On Wednesday, the GBP/USD pair's decline found support in the weekly S1 simple pivot point at 1.3264. The pivot point provided enough support for a recovery to start.
By the start of Thursday's US trading session, the rate had reached the resistance of the 200-hour simple moving average near 1.3340.
Economic Calendar
This week, the main event will be the release of the US employment data on Friday at 13:30 GMT. The release will consists of the publication of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The rate has moved from 35.2 to 52.8 pips on the employment release.
In addition, take into account the US ISM Services PMI survey results on Friday at 15:00 GMT. This event has caused GBP/USD moves from 8.2 to 26.9 base points.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
If the pair passes the resistance of the 200-hour simple moving average at 1.3340, the likely target for a potential surge would be the resistance zone at 1.3364/1.3371. The zone kept the GBP/USD down during the first part of this week's trading. Meanwhile, note that the 200-hour SMA caused the recent decline to the weekly S1 simple pivot point, which is located at 1.3264.However, if the 200-hour SMA pushes the pair down, it could look for support in the 50 and 100-hour simple moving averages, which have shown to be capable of impacting the rate for short periods. Below the SMAs, note the previously two times passed support zone at 1.3278/1.3300. Namely, the lower border of the zone appears to have still caused two surges on Wednesday and Thursday. Further below, the weekly S1 weekly simple pivot point provides support at 1.3264.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate remains in the borders of the large scale channel down pattern. Note the lower trend line of the pattern near 1.3200.Daily chart
Read More: Technical Analysis
Traders remain long
On Thursday, traders were bullish, as 66% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell the GBP against USD.
On Wednesday, the sentiment was 67% long and orders were 67% to sell.
On Thursday, traders were bullish, as 66% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell the GBP against USD.
On Wednesday, the sentiment was 67% long and orders were 67% to sell.