On Thursday, the GBP/USD bounced off the week's high level zone at 1.3640/1.3650. On Friday morning, the rate was looking for support in the 55 and 100-hour simple moving averages at 1.3600.
Economic Calendar
On Friday, at 12:30 GMT, the US employment data sets will be out. Namely, the Average Hourly Earnings change, the Non-Farm Employment Change and the monthly Unemployment Rate are bound to impact the value of the US Dollar.
The pair has reacted to the US employment data since May 2021 with moves from 35.2 to 76.4 base points.
Next week, most volatility could be caused by the US Consumer Price Index, Producer Price Index and Retail Sales data.
On Wednesday, the US Consumer Price Index and Core Consumer Price Index data will be published at 12:30 GMT. The event has caused moves from 31.4 to 58.0 base points.
Later on, on Wednesday, some new information could be found in the FOMC Meeting Minutes release at 18:00 GMT. Namely, hints at the future might be in the protocol of the Federal Reserve's policymaker meeting. The pair has moved from 5.1 to 40.4 pips due to the publication.
On Thursday, at 12:30 GMT the US Producer Price Index, Core Producer Price Index and the weekly US Unemployment Claims will be published.
The rate has moved from 8.4 to 25.8 pips on the PPI release. Meanwhile, the Unemployment Claims have created 10.4 to 18.3 base point moves.
On Friday, the US Retail Sales and Core Retail Sales at 12:30 GMT might impact the US Dollar's value. The GBP/USD has moved 10.4 to 29.6 pips due to the retail data release.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
A passing of the support of the 55 and 100-hour SMAs and the 1.3600 level would most likely result in a decline to the weekly simple pivot point at 1.3563 and the 200-hour SMA at 1.3559. Below these levels, there is no technical support as low as 1.3397.However, if the pair starts a surge, it would once again test the week's high level zone at 1.3640/1.3650. Above this zone, the weekly R1 simple pivot point at 1.3714 might act as resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has recovered and passed the resistance of the July and August low level zone. Meanwhile, the 55, 100 and 200-day simple moving averages were located at 1.3760 and 1.3845.Daily chart
Read More: Technical Analysis
Long sentiment disappears
On Wednesday, traders were long, as 56% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment was 55% long. By the middle of Friday's trading hours, the sentiment was 53% long.
Meanwhile, on Friday, in the 100-pip range around the rate the pending orders were 71% to sell.
On Wednesday, traders were long, as 56% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment was 55% long. By the middle of Friday's trading hours, the sentiment was 53% long.
Meanwhile, on Friday, in the 100-pip range around the rate the pending orders were 71% to sell.