On Friday, the GBP/USD traded above the previous high level of 1.3258, which was passed during the morning hours. In the near term future, the rate was set to test the 1.3300 level.
What would happen afterwards was by large based upon the strength of the resistance of the 1.3300 level.
Economic Calendar
The first week of the month is upcoming. It is set to reveal monthly data sets, which are expected to cause notable currency rate adjustments.
On Tuesday, at 14:00 GMT the US ISM Manufacturing PMI is set to be published.
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move from 5.5 to 17.7 pips. Dukascopy Analytics usually ignore this event because prior to August the EUR/USD move range was 5.5 to 8.4 pips. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
On Friday, the GBP/USD traded above the previous high level of 1.3258. In general, the pair had no technical resistance and was expected to surge. However, the 1.3280 level appeared to keep the rate down.If, the rate would manage to pass the 1.3280 level, in theory it should reach for the 1.3348 level, where a pivot point was providing resistance. Although, it was highly likely that the round exchange rate level of 1.3300 could provide resistance.
In the meantime, the rate could fail at passing 1.3280. In this case scenario the GBP/USD would look for support in the pivot point at 1.3220 and the approaching hourly simple moving averages. Note that the 55-hour SMA caused the recent surge of the pair.
Hourly Chart
On the daily candle chart, the pair's surge is occurring in the borders of a large scale channel up pattern.
Daily chart
Read More: Technical Analysis
Short sentiment remains intact
Since Thursday, 69% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
Previously, the orders were 53% to sell.
Since Thursday, 69% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
Previously, the orders were 53% to sell.