This week, various events will impact the markets. In general, fundamentals are set to impact the currencies.
On Tuesday, at 15:00 GMT, the Consumer Board Consumer Confidence index is set to reveal how the consumers are looking into the future.
On Wednesday, the ADP Non-Farm Employment Change, JOLTS Job Openings and ISM Manufacturing PMIs might cause moves in the USD. The releases will occur at 13:15 GMT and 15:00 GMT.
Afterwards, at 19:00 GMT, the US Federal Reserve is set to hike its Federal Funds Rate. The central bank is expected by the markets to increase its interest rate from 4.50% up to 4.75%. The announcement will be followed by a press conference of the Chairman of the Federal Reserve Jerome Powell at 19:30 GMT.
On Thursday, the Bank of England is expected to hike its interest rate from 3.50% up to 4.00% at 12:00 GMT.
On Friday, the US monthly employment data will be published at 13:30 GMT. The release will consist of Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD short-term view
A potential decline of the currency pair would have to pass below the weekly simple pivot point at 1.2369 and the 100 and 200-hour simple moving averages. Further below, note that the 1.2350 level has acted as support.On the other hand, a recovery of the GBP/USD is expected to face resistance at 1.2400 and 1.2420, before reaching the resistance zone at 1.2435/1.2450.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair trades between a resistance zone at 1.2305/1.2455 and support zone at 1.1740/1.1840. Most recently, the surge began to once again test the resistance zone.Daily chart
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Traders are shorting
On Monday, traders were 61% bearish, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 58% to buy the GBP/USD.
On Monday, traders were 61% bearish, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 58% to buy the GBP/USD.