On the GBP/USD charts, the events were reflected b a surge above 1.2590/1.2610 and the weekly R1 simple pivot point at 1.2660. During the second part of Tuesday's trading hours, the rate appeared to be heading to the 1.2700 mark and the weekly R2 simple pivot point at 1.2705.
In the meantime, traders were 61% bullish on Tuesday. After the surge, open positions volume was 52% short. Traders appear to have taken profits.
Economic Calendar
This week, the financial markets could react to United States macroeconomic events.
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
A move above the 1.2700 mark is expected to face the weekly R3 simple pivot point at 1.2740. Higher above, note the 1.2800 level.Meanwhile, a potential decline of the Pound against the US Dollar is set to look for support in the weekly R1 simple pivot point and the 1.2660 level. Further below, take into account the ascending 50, 100 and 200-hour simple moving averages.
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.Meanwhile, on Wednesday, the combination of the 50 and 100-day simple moving averages were acting as resistance near 1.2670.
Daily chart
Read More: Technical Analysis
Traders take profits
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.
On Thursday, traders were 52% short and orders were 54% to sell.
Meanwhile, pending orders in the 100-pip range around the rate were 58% to buy.
On Thursday, traders were 52% short and orders were 54% to sell.