On Friday morning, the support of the 1.2300 levels was passed. The GBP/USD had no technical support level as low as 1.2200.
However, the 1.2250 mark could provide psychological support, as round levels have played a significant role on the GBP/USD charts.
Economic Calendar
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the GBP/USD moved from 6.5 to 15.1 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
Take into account that early on Monday, at 08:30 GMT, the UK Current Account will be published. The event has caused moves from 11.5 to 44.3 pips since June 2018.
Meanwhile, the historical data tables for all of the next week's notable releases have been published. To see the publication, click on the link below.
Read More: 30.09-06.10 Event Historical Reactions
GBP/USD short-term review
The rate has pierced the support of the 1.2300 level, which was also strengthened by a weekly pivot point. At the time of writing, the rate was confirming the level as resistance.In theory, the currency pair should decline down to the 1.2200 level. At that level the rate would get support from the psychological effect of the round level and a weekly simple pivot point.
The decline could be slowed down by the psychological support of the 1.2250 mark.
On the other hand, the rate has sharply declined 1.76% since September 25. Due to that reason the pair could consolidate by trading sideways.
Hourly Chart
On the daily candle chart, the rate pierced the support of the 55-day simple moving average at 1.2290. In the near future, the technical level should strengthen the resistance levels near the 1.2300 mark.
Afterwards, the SMA should move downwards and push the rate down.
Daily chart
Read More: Technical Analysis
Short sentiment disappears
On Thursday, 62% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
On Friday morning, the short positions must have been closed, as only 53% of volume was in short positions.
Meanwhile, trader orders were to buy. In the 100-pip range 66% of orders were to buy and 34% were to sell. Previously, the orders were 80% to buy.
By looking at the numbers, it can be assumed that buy orders were executed, short positions were closed and profits from the decline were taken.
Although, the left over orders are the ones set up in the expectations of a reversal. Namely, buy to open long orders.
On Friday morning, the short positions must have been closed, as only 53% of volume was in short positions.
Meanwhile, trader orders were to buy. In the 100-pip range 66% of orders were to buy and 34% were to sell. Previously, the orders were 80% to buy.
By looking at the numbers, it can be assumed that buy orders were executed, short positions were closed and profits from the decline were taken.
Although, the left over orders are the ones set up in the expectations of a reversal. Namely, buy to open long orders.