Since the second half of yesterday's trading session, the British Pound has declined by 58 pips or 0.42% against the US Dollar. The currency pair tested the lower line of a descending channel pattern at 1.3714 on Thursday morning.
Economic Calendar
On Thursday, the US Unemployment Claims could cause a move from 9.5 to 22.8 pips.
On Friday, the UK Retail Sales could cause a move from 7.4 to 20.6 pips at 06:00 GMT.
GBP/USD short-term review
Given that the GBP/USD exchange rate is currently trading near the lower boundary of the channel pattern, a breakout could occur within the following trading session.However, if the descending channel holds, bullish traders might drive the price of the currency exchange rate higher today.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD exchange rate breached the 200- day simple moving average at 1.3776.In the near future, the currency exchange rate could trend bearish. The possible target for bearish traders will be near the 1.3600 area.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, traders were bullish, as 56% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, 55% of positions were short.
Meanwhile, in the 100-pip range around the rate, the pending orders were 74% to buy.
On Wednesday, traders were bullish, as 56% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, 55% of positions were short.
Meanwhile, in the 100-pip range around the rate, the pending orders were 74% to buy.