After reaching the pivot point at 1.3075 on Monday the GBP/USD currency exchange rate began a decline, which was being stopped by a psychological support level.
Namely, the 1.3050 level was supporting the currency exchange rate.
The Bureau of Labor Statistics released the US Non-Farm Employment Change, which came better-than-expected of 196K compared with forecasted 172K. Note, that the US Average Hourly Earnings and the Unemployment Rate were released at the same time.
On March, the US economy generated more jobs than expected, and the confidence in the state of labor market strengthened. Also, the slowdown in wage inflation supported the Fed's resolution to lessen further policy tightening.
UK GDP on Wednesday morning
This week data releases are set to start on Wednesday. On that day the calendar is full of events that have impacted various currencies in the past.During the morning hours of the day the UK GDP and Manufacturing Production are expected to cause an impact on the GBP currency pairs. The data release is scheduled to occur at 08:30 GMT.
At 11:45 GMT all attention will be given to the ECB. At that time the ECB Main Refinancing Rate and Monetary Policy Statement will be published.
Although, note that these European Central Bank announcements do not create the moves on the EUR pairs. They are caused by the ECB Press Conference, during which the President of the ECB reveals new information by answering questions. The press conference starts at 12:30 GMT.
Meanwhile, exactly at 12:30 GMT USD pairs will be impacted by the publication of the US Consumer Price Index data. This can cause a move of up to 20 pips on USD pairs.
Wednesday will end with an above all fundamental event. The Federal Reserve Federal Open Market Committee will publish their Meeting Minutes.
In the publication the Fed will officially announced their future plans for US monetary policy.
That will be all on Wednesday. On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.
All of these events will be covered by Dukascopy Analytics. The covers of these events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
GBP/USD short term review
During Friday's trading session, the 200-hour simple moving average retraced the currency exchange pair to 1.2940. On Monday morning, the rate was located below the weekly PP at the 1.3056 mark.From a technical perspective, most likely, the rate will break the resistance level of the weekly pivot point at 1.3074 to bounce off the psychological level at the 1.3100 mark.
On the other hand, the resistance levels of the weekly pivot point at 1.3074 and the 55-hour simple moving average at 1.3081 might retrace the rate to the bottom boundary of the medium pattern line at the 1.3000 mark.
Hourly Chart
On the daily chart the rate also has dropped below technical significance levels. Due to that event the closest support levels are located at 1.3000.
At that level the lower trend line of the long term ascending channel together with the 200-day simple moving average are located at.
Daily chart
By the middle of Friday's trading only 52% of the open position volume on the Swiss Foreign Exchange was short. Dukascopy Analysts assumed that it was caused due to profit taking from a recent drop.
On Monday, the sentiment was 51% long. The closing of short positions continued.
Meanwhile, the pending orders in the 100-pip range from the rate were almost neutral. Namely, 52% of the orders were set to sell.