The GBP/USD reached the target support levels at 1.2440. The support levels were tested two times by the middle of Wednesday's trading session.
The tests were followed by a failure, which resulted in a surge that reached technical resistance at 1.2490.Latest Fundamental Event Report
Bureau of Labor Statistics released the US ISM Non-Farm Employment Change data, which came out better-than-expected of 244K compared with the forecast of 162K.
According to the official release: "Notable job gains occurred in professional and business services, in health care, and in transportation and warehousing."
UK GDP and minor US data
This week the data that will impact the GBP/USD will come from the UK and the US. There are FOMC Meeting Minutes incoming and a couple of minor data releases.
The UK GDP and Manufacturing Production will be released at 08:30 GMT on Wednesday. This event has caused moves from 19.8 to 38.1 pips since February.
The FOMC Meeting Minutes will come at 18:00 GMT on Wednesday. The event has caused moves on the GBP/USD from 9.2 to 22.5 pips since November 2018.
On Thursday, the US CPI and Core CPI data will be published at 12:30 GMT. The data release has caused moves from 14.8 to 26.6 pips since February.
On Friday, the US Producers Price Index will be released at 12:30 GMT. The event has caused moves from 9.0 to 35.6 pips. Although, note that the 35.6 pip move was actually caused by other announcement being made at the same time as the PPI was published.
For more information watch this week's Economic Calendar Analysis
Click Here: Economic Calendar Overview 08/07
GBP/USD short-term review
During Tuesday, the GBP/USD exchange rate tried to breach the support level formed by the Fibonacci 0.00% retracement and the weekly S1 at 1.2442. During today's morning, the rate jumped to the 1.2480 level.Given, that the currency pair is pressured by the 55-hour moving average, currently located at 1.2491, it is expected, that the pair could trade sideways between the given support and resistance levels.
However, if the given resistance does not hold, it is likely, that the rate could extend gains. In this case, a possible upside target is the 100-hour moving average, currently located at the 1.2521 mark.
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.
The trend line was located on Wednesday at the 1.2420 level.
Daily chart
Read More: Technical Analysis
Traders remain long
On Wednesday, 70% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were no longer neutral, as 57% of orders were set to buy. Previously, 53% were set to buy.
On Wednesday, 70% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were no longer neutral, as 57% of orders were set to buy. Previously, 53% were set to buy.