The GBP/USD recovered to the 1.3250 level. On Friday morning, it was expected that the currency exchange rate would test previous high levels.
Namely, the 1.3265 mark should provide resistance to the currency pair.
FOMC Meeting Minutes
According to the official release, the Federal Open Market Committee and the Board of Governors discussed the need to ease monetary policy to support the US economy.
Hourly Chart
Economic Calendar
Next week, as the last week of the month, the following week is expected to be a quiet one. However, there are events that should be watched in the case a sharp move occurs.
On Wednesday, at 12:30 GMT traders should watch the release of the US Durable Goods Orders data. The event is capable of causing volatility increases above average level.
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined. Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
In the near term future, the GBP/USD currency exchange rate was set to test the previous high level near 1.3265. In the case of this level being passed the rate would aim at the weekly R3 simple pivot point at 1.3289. If the pivot point fails to keep the rate down, next target would be the 1.3350 level.On the other hand, the rate could consolidate by trading sideways below any of the mentioned resistance levels or declining to the support of the weekly R2 simple pivot point at 1.3216.
Hourly Chart
On the daily candle chart, the pair is trading in a channel up pattern, which has guided the rate since the end of June
In the meantime, the rate is in the overbought zone, as it is trading far above the 55-, 100- and 200-day moving averages. This signals that the rate needs to trade sideways or retrace back down.
Daily chart
Read More: Technical Analysis
Traders remain short
On Friday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 68% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to buy the GBP/USD pair.
On Thursday, 66% of orders were to buy.
On Friday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 68% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to buy the GBP/USD pair.
On Thursday, 66% of orders were to buy.