On Monday morning, the GBP/USD made an attempt to surge above the 1.2330 level and failed at it. In general, the rate traded near Friday's levels.
The rate was expected to either consolidate or decline. Meanwhile, Swiss traders had gone long on the pair.
Economic Calendar
This week, there are a couple of US macroeconomic data releases, which might impact the rate.On Tuesday, the US ISM Manufacturing PMI is set to be released at 14:00 GMT. The event has caused moves from 13.2 to 26.7 pips on the GBP/USD. The largest reaction was on the last release.
On Wednesday, the ADP Non-Farm Employment Change is set to be published at 12:15 GMT. This release has lost its significance during the last year, as it has caused moves from 6.8 to 28.4 pips since October 2018.
On Thursday, at 14:00 GMT the ISM Non-Manufacturing PMI is scheduled to be published. This release has caused rate adjustments on the GBP/USD from 8.8 to 22.6 pips since September 2018.
The week will end with the biggest event of the month in the US, the employment data publication, on Friday at 12:30 GMT. The release will consist of three data sets being published. The Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 14.8 to 34.1 pips on the GBP/USD charts since May 2019.
All of the historical reaction data tables to all notable data releases have been published in a separate publication. To see the publication, click on the link below.
Read More: 30.09-06.10 Event Historical Reactions
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate reversed north from the lower boundary of a descending channel at 1.2280. During Monday morning, the rate was testing the 55-hour SMA at 1.2320.If the given moving average holds, it is likely that the British Pound could decline against the Greenback in the short run. A possible downside target is the 1.2260/1.2280 area.
Otherwise, the currency pair could trade sideways near the given resistance in the nearest future. It is unlikely, that bulls could prevail in the market, and the pair could exceed the 1.2370 mark due to the resistance formed by the 100-hour SMA and the weekly PP.
Hourly Chart
On the daily candle chart, the rate pierced the support of the 55-day simple moving average at 1.2290, and still faced the support on Monday.
Although, previously it was thought that the SMA had failed to hold and a soon decline was expected. Daily chart
Read More: Technical Analysis
Traders go long
On Friday morning, 53% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Monday's trading, the sentiment had become long, as 56% of volume was in long positions.
Meanwhile, trader orders were to buy. In the 100-pip range 64% of orders were to buy and 36% were to sell. Previously, the orders were 66% to buy.
By looking at the numbers, it can be assumed that buy orders were executed, short positions were closed and profits from the decline were taken.
Although, the left over orders are the ones set up in the expectations of a reversal. Namely, buy to open long orders.
By the middle of Monday's trading, the sentiment had become long, as 56% of volume was in long positions.
Meanwhile, trader orders were to buy. In the 100-pip range 64% of orders were to buy and 36% were to sell. Previously, the orders were 66% to buy.
By looking at the numbers, it can be assumed that buy orders were executed, short positions were closed and profits from the decline were taken.
Although, the left over orders are the ones set up in the expectations of a reversal. Namely, buy to open long orders.