The GBP/USD exchange rate revealed a short-term descending channel.
From a theoretical point of view, it is likely that some downside potential could prevail in the market.
Economic Calendar
On Thursday, the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
The week will end with the UK Retail Sales release at 08:30 GMT. Detailed data with moves in pips throughout the last half a year can be examined by clicking on the link below.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate revealed a short-term descending channel. During Thursday morning, the rate declined below 1.2560.From a theoretical perspective, it is likely that some downside potential could prevail in the market, and the currency pair could reach the support area formed by the weekly S1, the monthly PP and the 1.2470/1.2500 area.
Additionally, it is unlikely that some upside potential could prevail in the market due to the resistance range formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2565/1.2590 area.
Hourly Chart
On the daily candle chart, the rate has faced the resistance provided by the Fibo 61.80% at 1.2646 and the 200-day moving average near 1.2700.
In the meantime, the 55- and 100-day moving average could provide support circa 1.2440.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Thursday, 53% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 63% of pending orders were set to buy the GBP/USD.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 63% of pending orders were set to buy the GBP/USD.