On Monday, the GBP/USD found support in a cluster of technical levels just below the 1.2900 mark and began a surge. By the middle of the day, the surge was expected to reach the 1.2950 level.
At that level, the pair should encounter the psychological resistance, which stopped the rate's last week's surge.
Economic Calendar
This week the rate might get impacted by US data.On Monday, at 15:00 GMT the ISM Manufacturing PMI is set to be published. This event has caused moves from 20.8 to 28.9 pips since July 2019.
On Wednesday, there are two US events that the media will pay attention to. The ADP Non-farm Employment Change at 13:15 GMT and the US ISM Non-Manufacturing PMI at 15:00 GMT.
The ADP Employment Change has created reactions on the GBP/USD charts from 11.8 to 28.4.
In the meantime, the ISM Non-Manufacturing PMI since June 2019 has caused moves from 8.8 to 37.8 pips.
On Friday, the US Employment data sets will be published at 13:30 GMT. The event consists of three numbers – Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. Since July, moves from 21.7 to 51.3 pips have been caused by the release.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 02.12-06.12 Event Historical Reactions
GBP/USD short-term review
By the middle of Monday's London trading hours the GBP/USD bounced off support levels near 1.2900 and broke resistance levels up to the 1.2920 level.In general, the surge was most likely to continue, as the rate faced no technical resistance as high as 1.2960 level. At that level an upper trend line of a channel up pattern was located at.
On the other hand, it can be seen that the 1.2940 and 1.2950 levels are likely to provide psychological resistance, as they did last week.
Hourly Chart
On the daily candle chart, the rate is approaching the support of a large scale channel up pattern.
In the meantime, take a look at the still active medium scale channel down pattern. In the case of the rate breaking the weekly R1 simple pivot point, the pattern's upper trend line would provide resistance near 1.2965.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since Thursday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were set to sell. In the 100-pip range, 59% of orders were sell and 41% were to buy.
Previously, 61% of orders were to sell.
Meanwhile, trader orders were set to sell. In the 100-pip range, 59% of orders were sell and 41% were to buy.
Previously, 61% of orders were to sell.