This week, the rate has been bouncing between the 1.2660 and 1.2720 levels, as it is waiting. The GBP/USD is waiting for two central banks to release their base interest rates and set the value of the currencies. Economic Calendar
On Wednesday, the top event of them all is set to take place. The release of the US Federal Reserve Federal Funds Rate and the FOMC Statement at 19:00 GMT. Afterwards, at 19:30 GMT, the head of the Federal Reserve Jerome Powell is set to host a press conference.
Note that the ADP Non-farm Employment Change publication is also scheduled for Wednesday. It is most likely that I won't cause an impact, as the markets will wait for the Fed rate.
Meanwhile, the Bank of England is also set to release its base interest rate during this week. On Thursday, at 12:00 GMT the Bank of England will publish its Official Bank Rate.
On Thursday, the US ISM Manufacturing Purchasing Managers Index is set to be published at 15:00 GMT. A big deviation from the forecast could cause a market reaction
On Friday, at 13:30 GMT, the US Employment data sets will be released and they are set to impact the market. The release consists of Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings month on month difference.
GBP/USD hourly chart analysis
A move below 1.2660 would result in the pair struggling in the borders of a support range at 1.2650/1.2660. Below the range, note the weekly S1 simple pivot point at 1.2643. Further below, the 1.2590/1.2610 range is highly likely to once again impact the rate.However, a potential surge of the Pound against the USD could face resistance in the combination of the 50, 100 and 200-hour simple moving averages, the weekly simple pivot point at 1.2709 and the 1.2700 mark. Above these levels, the 1.2740 and 1.2760 levels have acted as resistance
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, additional support appears to be provided by the 50-day simple moving average at 1.2680. In addition, note the 200-day SMA at 1.2575.Daily chart
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Traders are neutral
On Monday, traders were 53% long, as that proportion of all open positon volume on Swiss Foreign Exchange was in long positions.
Meanwhile, pending orders in the 100 pip range around the rate were 52% to buy.
On Tuesday, traders were 50% short and long. Pending orders were 54% to buy.
Meanwhile, pending orders in the 100 pip range around the rate were 52% to buy.
On Tuesday, traders were 50% short and long. Pending orders were 54% to buy.