During today's morning, the GBP/USD exchange rate was testing the 200-hour SMA at 1.3053.
If the given moving average holds, it is likely that a reversal south could occur. Otherwise, the rate could continue to extend gains.
Economic Calendar
This week, there are no events left that could affect the GBP/USD rate.
Next week, the are three scheduled events that could impact on the GBP/USD rate.
On Tuesday, December 31, the US CB Consumer Confidence will be published at 15:00 GMT.
On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT.
At the same day, the FOMC Meeting Minutes data will be published at 19:00 GMT.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 23.12-27.12 Event Historical Reactions
GBP/USD short-term review
During previous trading sessions, the GBP/USD exchange rate went upwards. During today's morning, the rate was testing the resistance level—the monthly R1 at 1.3028.Note that the currency pair is pressured by the 200-hour moving average at 1.3054. Thus, it is likely that some downside potential could prevail in the short term. In this case the pair could gain support from the 55– and 100-hour SMAs at 1.2977.
However, if the given resistance level does not hold, it is likely that the British Pound could continue to appreciate against the US Dollar in the short term. A possible upside target is the monthly R2 at 1.3115.
Hourly Chart
On the daily candle chart, the rate's decline has broken the large scale channel up pattern. Due to that reason the closest by support on the daily chart was the 55-day simple moving average at the 1.2950 level.
Daily chart
Read More: Technical Analysis
Traders short the decline
On Friday, 55% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 96% of orders were to sell and 4% were buy orders.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 96% of orders were to sell and 4% were buy orders.