This week, the financial markets could react to United States macroeconomic events.
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change is capable of creating moves. Afterwards, note the ISM Services PMI at 14:00 GMT.
On Friday, one of the top events will take place. The US employment data sets will be published at 12:30 GMT. The US release will consist of the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings change.
GBP/USD hourly chart analysis
The recovery is expected to face strong resistance in the 1.2590/1.2610 range which is strengthened by the 50 and 100-hour simple moving averages. Moreover, note the weekly S1 simple pivot point at 1.2593. Above these levels, the combination of the weekly simple pivot point at 1.2630 and the 200-hour simple moving average might slow down the pair, before the 1.2640/1.2660 levels are tested. Note that the 200-hour SMA could decline and strengthen the 1.2590/1.2610 range.On the other hand, a decline of the pair could be slowed down by the weekly S2 at 1.2553, prior to the rate reaching the 1.2540 level. Further below, note the combination of the low level at 1.2519, the 1.2520 level and the weekly S3 simple pivot point at 1.2515.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the rate is finding support in the 200-day simple moving average at 1.2540. However, it could be that the 1.2500/1.2535 range is the real source of the support.Daily chart
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Traders are long
On Tuesday, traders were 61% bullish, as that proportion of all open position volume on Swiss Foreign Exchange was in long positions.
Meanwhile, pending orders in the 100-pip range around the rate were 58% to buy.
During the previous week, traders were neutral on the rate.
Meanwhile, pending orders in the 100-pip range around the rate were 58% to buy.
During the previous week, traders were neutral on the rate.