On Thursday, the GBP/USD sharply plummeted to the 1.3275 mark. By doing so, the pair reached below the 2022 low level. Afterwards, the rate recovered and started to trade above the 2022 low level zone at 1.3360/1.3370. In the meantime, on Friday, the pair was being approached by the resistance of the 50-hour simple moving average.
Economic Calendar
At 15:00 GMT on Tuesday, the US Institute for Supply Management Purchasing Managers Index survey results for the Manufacturing sector will reveal the outlook of the managers in the economy sector on the near term future.
On Wednesday, at 13:15 GMT the ADP Non-Farm Employment change might create a move on all assets and pairs that are traded against the US Dollar.
On Thursday, the US Unemployment Claims might create a minor move of the USD at 13:30 GMT. Later on, expect the US ISM Services PMI to impact the USD at 15:00 GMT.
The week's most notable event will close the week. Namely, on Friday, at 13:30 GMT the US Employment data sets are set to be published. The release will consist of three numbers - the Average Hourly Earnings change month-on-month, the Non-Farm Employment Change during the month and the Unemployment Rate in February.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
If the resistance of the 50-hour simple moving average provides resistance, the pair would have to pass below the 2022 low level zone at 1.3360/1.3370, before testing the support of the 1.3350 mark and the weekly S2 simple pivot point at 1.3349. Further below, the recent low level at 1.3275 might act as support.However, a potential surge above the 50-hour SMA near 1.3435 could find resistance in the 1.3450 level. Higher above, take into account the zone at 1.3485/1.3500, the weekly S1 simple pivot point at 1.3505 and the 100-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the invasion of Ukraine by Russia caused a surge of the US Dollar, which also impacted the GBP/USD chart. On the GBP/USD chart it resulted in a breaking of the channel up pattern, which had guided the rate since November.In the near term future, the pair could look for support in round exchange rate levels, before reaching the support of the 2021 low level zone at 1.3200. In the meantime, note the resistance of the 50, 100 and 200-day simple moving averages at 1.3540, 1.3460 and 1.3605.
Daily chart
Read More: Technical Analysis
Traders are short
On Friday, traders were mostly bearish, as 55% 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 52% to sell the GBP against USD.
On Friday, traders were mostly bearish, as 55% 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 52% to sell the GBP against USD.