On Friday, the top event of the week is set to take place, as the head of the Federal Reserve, Chairman Powell, is set to give a speech on monetary policy at the Jackson Hole Symposium. Last year's speech was the catalyst for the September drop of the financial markets, as the USD gained value.
GBP/USD short-term view
In the case of passing below 1.2600 the rate is expected to reach for the support of the weekly S2 simple pivot point at 1.2540. Further below, take into account the 1.2500 mark.On the other hand, a recovery of the Pound against the US Dollar is set to face resistance in the weekly S1 at 1.2634 and the combination of the descending 50, 100 and 200-hour simple moving averages near the 1.2700 mark.
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. The levels turned into resistance at the start of the month. A move above the resistance could aim at the 1.3000 mark.Previously, the GBP/USD reached the support zone above 1.2600 and the 100-day simple moving average. A passing below these support levels could result in the rate looking for support in the 1.2300/1.2450 range and the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders are bullish on GBP
On Thursday, open GBP/USD positions by Swiss Foreign Exchange traders were 59% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 59% to sell.
On Wednesday, positions were 58% long and orders were 53% to buy.
On Thursday, open GBP/USD positions by Swiss Foreign Exchange traders were 59% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 59% to sell.
On Wednesday, positions were 58% long and orders were 53% to buy.