The technical levels at 1.3030 held and caused the GBP/USD rate's decline to the 1.2900 mark.
On Friday morning, the currency exchange rate found support in 1.2900 and began a surge.
Economic Calendar
Next week, US Elections on Tuesday are bound to take away all attention from the macroeconomic data releases. However, there are things to note.
On Monday, the US ISM Manufacturing PMI could cause a notable move at 15:00 GMT. This event has caused GBP/USD moves from 11.1 to 29.5 pips.
On the day after the US Election, on Wednesday, the US ISM Non-Manufacturing PMI will be published at 15:00 GMT.
At mid-day on Thursday the Bank of England is set to make a rate announcement. Most likely the bank would reach to the impact of the US election to the GBP/USD currency exchange rate and the recent rise in coronavirus cases.
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT. Throughout October, the event has caused GBP/USD moves from 9.6 to 22.3.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
The currency exchange rate has moved from 18.5 to 43.0 pips on the announcement since June.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
The USD/GBP exchange rate has revealed a short-term descending channel.From a theoretical perspective, it is likely that the currency pair could continue to trade downwards within the given channel in the short term. The pair could re-test the lower channel line circa 1.2850.
On the other hand, if the 1.3030 resistance fails, the rate would immediately face the weekly simple pivot point at 1.3044. If the pivot point fails, the rate could reach for the 1.3100 mark.
In the meantime, note that the exchange rate could gain support from the weekly S1 at 1.2911. Thus, the rate could trade sideways, pressured by the 55-hour SMA near 1.2970.
Hourly Chart
On the daily candle chart, one can observe the broken channel up pattern.
In the meantime, note that the 1.3030 mark's resistance was strengthened by the 55-day simple moving average and the 100-day SMA was providing support at 1.2874.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday, 53% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the open positions were balanced. 50% was short and 50% was long.
Meanwhile, in the 100-pip range around the rate the pending orders were 66% to sell the GBP/USD pair.
On Friday, 53% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the open positions were balanced. 50% was short and 50% was long.
Meanwhile, in the 100-pip range around the rate the pending orders were 66% to sell the GBP/USD pair.