This week, notable events are over. Next week, economic data could start impacting the markets on Tuesday.
On Tuesday, the Markit institute will release its Purchasing Managers Index results. Despite being called an index, it is actually a survey of managers. Two sectors are surveyed. Namely, the Services and Manufacturing firms are asked how they are seeing the future. A reading above 50.0 shows growth, but a reading below 50.0 equals expectations of a sector decline. However, the market reacts to whether the reading is above or below the expected survey result.
At 08:30 GMT, the United Kingdom PMIs will be published and could impact the rate through an adjustment of the value of the Pound.
At 13:45 GMT, all of financial markets could move due to the publication of the United States Manufacturing and Services sectors Purchasing Managers Indices.
On Thursday, watch the publication of the US Advance quarterly GDP publication at 12:30 GMT. Note that the United States GDP data is published over the span of a quarter by giving updated data each month. First release has the most impact and is called the Preliminary. It is followed by the Advance GDP release, which is expected on Thursday. Afterwards, the GDP publications end with the Final GDP, and the cycle starts again with a new quarter.
Also on Thursday, watch the US Pending Home Sales data publication at 14:00 GMT. In the recent months, this previously ignored data set has started to impact the US Dollar.
On Friday, one of the top US data releases will occur. The Core Personal Consumption Expenditure will reveal more detailed impact of inflation on the US consumer. US monetary policy makers have been observing this index instead of the Consumer Price Index to decide upon their policy.
GBP/USD hourly chart analysis
A surge of the Pound against the US Dollar is expected to face the resistance of the 1.2500 mark, the 1.2519 level, the weekly simple pivot point at 1.2528, the 200-hour simple moving average and the 1.2535/1.2540 range. All of these levels have shown to be capable of impacting the rate. However, due to them being spread out across a 40 base point range, they could fail and the currency exchange rate would eventually aim at the 1.2600 level.On the other hand, a decline of the currency exchange rate is set to look for support in the 1.2450 level and the 50 and 100-hour simple moving averages. Below these levels, the 1.2410/1.2425 range and the 1.2400 are highly likely set to act as support.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the GBP/USD is trading between the support of the 1.2380/1.2430 range and resistance of the 1.2500/1.2535 zone and the 200-day simple moving average.A descent of the 200-day SMA could push the rate into a decline. If the pair declines, support could be looked for in the 1.2300 and 1.2200 levels.
Daily chart
Read More: Technical Analysis
Traders stick to long positions
On Monday, traders were 62% 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 50% to buy and to sell.
During mid-Thursday hours, 62% of traders had went long and orders were 64% short. Traders are still long, but appear to have close by stop losses.
Meanwhile, pending orders in the 100-pip range around the rate were 50% to buy and to sell.
During mid-Thursday hours, 62% of traders had went long and orders were 64% short. Traders are still long, but appear to have close by stop losses.