During today's morning, the GBP/USD exchange rate tumbled to the support level - the monthly S1 1.2545.
If the given support level does not hold, it is expected, that bears could continue to prevail in the market.Latest Fundamental Event Report
The British Pound traded sideways against the US Dollar, following the UK Current Account data release on Friday at 08:30 GMT. The GBP/USD exchange currency rate gained 7 pips or 0.06% right after the release. The British Pound continued trading at the 1.2685 level against the Greenback.
Office for National Statistics released the UK Current Account data, which came out better-than-expected of negative 30.0B compared with forecasted negative 32.0B.
According to the official release: "The UK financed its current account deficit mainly through other investment, where UK investors withdrew overseas deposits while overseas investors increased their deposits with UK monetary financial institutions."
US employment data set in focus this week
For this pair the week will end with the US Employment data sets – the Average Earnings, Unemployment Rate and Non-Farm Employment Change.
On the GBP/USD charts this event has caused moves in a range from 14.8 to 27.7 pips since February.
GBP/USD short-term review
During the previous trading session, the GBP/USD exchange rate traded sideways at the psychological level at 1.2580. During today's morning, the rate declined to the 1.2560 level.It is expected, that the currency pair could continue to decline within the following trading session, as it is pressured by the 55– and 100-hour SMAs, currently located at 1.2578 and 1.2602 respectively. Note, that the pair has to surpass the support level—the monthly S1 at 1.2545.
If the given support level holds, it is expected, that a reversal north could occur. However, it is unlikely, that the rate could exceed the 1.2594 mark due to the resistance level formed by the weekly S2.
Hourly Chart
On the daily candle chart one can observe that the rate remains in the borders of a descending channel pattern. Namely, the pair is targeting the lower channel line.
Note, that the rate is pressured by the 55-day moving average at 1.2793, thus, it is unlikely, that some upside potential could prevail in the short term.
Daily chart
Since Friday, 64% of open position volume on the Swiss Foreign Exchange was in long positions.
On Friday, 72% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 61% of orders were set to sell.
In general, traders were long on the pair, but had close by take profits and stop losses.