Meanwhile, note that the surge has reached the 1.3200 mark, which appears to be acting as a magnet to the pair. Namely, the rate is consolidating its gains near this level.
Economic Calendar
This week, the top event of them all is scheduled. On Wednesday, at 18:00 GMT, the US Federal Reserve is set to cut interest rates.
The market consensus is that the Fed will cut by 0.25%. However, some expect that the Fed might cut even 0.50%. In the case of the larger cut, the US Dollar would decline.
However, in most cases, there is more impact from the follow-up press conference than the rate announcement. The press conference of the Chairman of the US Federal Reserve Jerome Powell is scheduled for 18:30 GMT.
Prior to the Fed event, some volatility might be caused by a surprise in the US monthly Retail Sales data sets at 12:30 GMT.
After the Fed, the Bank of England makes an announcement the next day. The BoE is first taking a look at the USA, before deciding.
The Bank of England is set to keep the Official Bank Rate at 5.00% on Thursday at 11:00 GMT. It is forecast that 2 of the 9 monetary policy committee members will vote for a rate cut, but 7 of 9 are set to vote for keeping rates unchanged.
On Friday, watch the Japanese Yen during the Asian session. The Bank of Japan is expected to announce its monetary policy. Despite the BoJ Policy Rate being forecast to remain unchanged, markets might move due to comments from the central bankers. All of financial markets, not just the JPY could move due to the recent reveal of the Japanese Yen carry trade.
The BoJ does not give a predetermined time for its announcements, as it wants to avoid unnecessary speculation from market participants.
GBP/USD hourly chart analysis
A resumption of the prior surge is expected to face the 1.3220/1.3230 zone, the weekly R2 simple pivot point and the 1.3260 level, which marks the August high levels.In the case of a decline, the pair will most likely look for support in the weekly R1 simple pivot point at 1.3184, the lower trend line of the channel pattern and the 1.3175/1.3180 range. If these levels fail, the combination of the 1.3160 level and the 50-hour SMA might start to act as support, before the pair reaches the 1.3180 level and the combination of the 100 and 200-hour simple moving averages. .
Hourly Chart
GBP/USD daily candle chart analysis
If one looks at the broader picture, it appears that the July high levels have acted as support and caused the recent surge above the 1.3100 level. Next target could be the August high levels.Read More: Technical Analysis
Traders remain short
On Monday, trader open position volume showed that 72% of trader open positions were short.
Meanwhile, pending orders 100-points around the rate were 59% to buy.
On Thursday, traders were 72% short, but pending orders were 75% to sell.
Meanwhile, pending orders 100-points around the rate were 59% to buy.
On Thursday, traders were 72% short, but pending orders were 75% to sell.