On Friday, at 12:30 GMT, the US employment data will impact the USD and all rates that involve it. The release will consist of the US Average Hourly Earnings change, Non-Farm Employment Change and the official Unemployment Rate.
Next week, watch out for the US Consumer Price Index at 12:30 GMT. The inflation data will reveal whether the Fed is managing to fight inflation or not.
On August 11, the markets will look at the UK GDP for signs of recession at 06:00 GMT and the US Producer Price Index at 12:30 GMT to analyse potential consumer price increases in the future.
GBP/USD short-term view
A move below 1.2700 could result in the pair once again looking for support in the 1.2650 level and the weekly S2 simple pivot point at 1.2635. Further below, take into account the zone that surrounds the 1.2600 mark.On the other hand, a recovery of the Pound against the USD is set to face resistance in the 1.2710/1.2740 range where the 50-hour SMA, the weekly S1 simple pivot point and a prior resistance zone are located at. Above these levels, note the 100-hour simple moving average at 1.2761, the 1.2800 level and the 200-hour SMA near 1.2817.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support of the 1.2800 mark and the 50-day simple moving average. On Thursday, the GBP/USD reached the support zone above 1.2600 and the 100-day simple moving averages.Daily chart
Read More: Technical Analysis
Traders are long
On Thursday, open GBP/USD positions by Swiss Foreign Exchange traders were 54% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 58% to buy.
On Friday, positions were 53% long and orders were 60% to buy.
On Thursday, open GBP/USD positions by Swiss Foreign Exchange traders were 54% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 58% to buy.
On Friday, positions were 53% long and orders were 60% to buy.