After finding support in the 1.3800 mark on Wednesday, the GBP/USD currency exchange rate surged to the 1.3850 level. This level provided enough resistance for a decline to begin.
By the middle of Thursday's European trading hours, the rate was aiming at the support of the 1.3800 mark.
Economic Calendar
On Thursday, at 12:30 GMT, the US Retail Sales and Core Retail Sales data sets are set to be released to the public. The event has created moves from 13.2 to 29.6 pips since April.
Note that at the same time the US Unemployment Claims are scheduled to be released.
On Friday, the UK Retail Sales could cause a minor increase of volatility on GBP pairs at 06:00 GMT. For example, the GBP/USD has moved from 7.4 to 15.6 pips on the release.
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
Meanwhile, the pair mostly ignored the weekly simple pivot point and the 55, 100 and 200-hour SMAs, as round exchange rate levels managed to hold.In the case that the 1.3800 level's support holds, the GBP/USD could recover and once again test the 1.3850 level's resistance. A passing of the 1.3850 mark might result in the pair reaching the 1.3910 level, where the weekly R1 simple pivot point was located at.
On the other hand, a decline below the 1.3800 mark would highly likely reach the weekly S1 simple pivot point at 1.3748 and the 1.3750 level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate trades in limbo around the 55 and 200-day simple moving averages near the 1.3810/1.3830 zone.Meanwhile, the 100-day SMA remains near the 1.3920 level. On Tuesday, it acted as resistance to the surge that was caused by the US CPI. The resistance was enough to beat the rate back down to trade near the 55 and 200-day SMAs.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Wednesday, traders were short, as 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to buy.
Since Wednesday, traders were short, as 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to buy.