It is likely, that the rate could go downside, as it is pressured by the 55-hour moving average at 1.2594. Latest Fundamental Event Report
The British Pound traded sideways against the US Dollar, following the UK Current Account data release on Friday at 08:30 GMT. The GBP/USD exchange currency rate gained 7 pips or 0.06% right after the release. The British Pound continued trading at the 1.2685 level against the Greenback.
Office for National Statistics released the UK Current Account data, which came out better-than-expected of negative 30.0B compared with forecasted negative 32.0B.
According to the official release: "The UK financed its current account deficit mainly through other investment, where UK investors withdrew overseas deposits while overseas investors increased their deposits with UK monetary financial institutions."
US employment data set in focus this week
For this pair the week will end with the US Employment data sets – the Average Earnings, Unemployment Rate and Non-Farm Employment Change.
On the GBP/USD charts this event has caused moves in a range from 14.8 to 27.7 pips since February.
GBP/USD short-term review
During the previous trading session, the GBP/USD exchange rate traded sideways around the 1.2580 level. No significant changes were observed during today's morning.Note, that the currency pair is pressured by the 55-hour SMA, currently located at the 1.2594 mark. Thus, it is likely, that some downside potential could prevail in the market, and the pair could decline to the support level—the monthly S1 a 1.2545.
On the other hand, the rate could continue to trade sideways in the nearest future within the cluster formed by the psychological level at 1.2560 and the weekly S2 at 1.2594.
Hourly Chart
On the daily candle chart one can observe that the rate remains in the borders of a descending channel pattern. Namely, the pair is targeting the lower channel line.
Note, that the rate is pressured by the 55-day moving average at 1.2793, thus, it is unlikely, that some upside potential could prevail in the short term.
Daily chart
Since Friday, 64% of open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, 75% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 60% of orders were set to sell.
In general, traders were long on the pair, but had close by take profits and stop losses.