By late Monday's trading, the situation was mostly unchanged, as the rate had bounced off the combination of the pattern's lower trend line and the 1.3120/1.3130 range.
Economic Calendar
Notable events start on Tuesday. At 14:00 GMT, the ISM Manufacturing PMI data is set to be published and might impact the US Dollar.
On Wednesday, at 14:00 GMT, the US JOLTS Job Openings could impact the market via an adjustment of the value of the US Dollar.
On Thursday, at 12:15 GMT, the ADP Non-farm Employment Change might cause a move.
However, the top employment data publication of them all will happen on Friday. At 12:30 GMT the US official monthly employment data sets will be published.
GBP/USD hourly chart analysis
An extension of the ongoing recovery is set to face the combination of the 200-hour simple moving average and the upper trend line of the channel pattern together with the weekly simple pivot point, all near 1.3165. Higher above, note the 1.3180 level's resistance and the 100-hour simple moving average. These levels could stop the pair, before it tests the 1.3200 mark. Even higher above, take into account the resistance range at 1.3220/1.3230 that is strengthened by the weekly R1 simple pivot point at 1.3223.On the other hand, a decline is set to look for support in the 1.3120/1.3130 zone. Below this range, the 1.3100 level might stop the pair, before it reaches the lower trend line of the channel down pattern.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the pair has broken the ascending channel pattern to the upside. Namely, the gains are more than it was expected to be possible. Moreover, the rate is above the 2023 high level. In general, the Pound has not been this high against the USD since early 2022.However, the recent decline appears to be aconsolidation of prior gains, as the surge had overextended itself.
Read More: Technical Analysis
Traders reduce short positions
On Monday, trader open position volume showed that 70% of trader open positions were short. Meanwhile, pending orders 100-points around the rate were 55% to buy.
On Friday, traders were 74% short, but pending orders were 64% to buy.
On Friday, traders were 74% short, but pending orders were 64% to buy.