On Thursday, the GBP/USD currency exchange rate retreated to trade below the 100-hour simple moving average. The SMA was providing resistance at the 1.3200 level.
In the meantime, the currency exchange rate had no technical support as low as the 1.3100 level, where the 200-hour SMA was located at.
Economic Calendar
On Thursday, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims. The rate could move up to 29 pips on the announcement.
On Friday, the US Producer Price Indices are scheduled to be released at 13:30 GMT. The GBP/USD has moved from 11.1 to 36.2 pips during the release of the PPIs.
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
It is likely that some downside potential could continue to prevail in the market, as the currency pair could be pushed down by the 55– and 100-hour SMAs in the 1.3200/1.3230 range. The pair could decline to the 200-hour SMA near 1.3100.In the meantime, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the resistance level formed by the weekly R1 at 1.3270 in the short run.
Hourly Chart
On the daily candle chart, the rate has clearly passed the October high level of 1.3180. Next target of a surge could be the August high at 1.3480.
In the meantime, the rate had additional support on the chart at the 1.3000 level. At that level, the 55-day simple moving average was located at.
Daily chart
Read More: Technical Analysis
Sentiment becomes neutral
On Thursday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 62% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to buy the GBP/USD pair.
On Wednesday, 55% of orders were to sell.
On Thursday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 62% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to buy the GBP/USD pair.
On Wednesday, 55% of orders were to sell.