On Wednesday, the US ISM Services PMI at 14:00 GMT might impact the pair through the value of the US Dollar.
On Thursday, the top event for the GBP will occur. Namely, the Bank of England is set to make reveal its Monetary Policy Summary and the Official Bank Rate. The central bank is expected to hike by 0.50% from 1.25% up to 1.75%.
On Friday, one of the top events of the month will take place. At 12:30 GMT, the US employment data sets are scheduled to be released. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD short-term view
If the Pound continues to appreciate in value against the US Dollar, the currency pair would have to pass the resistance of the 1.2250 level first. Higher above, note the weekly R1 simple pivot point at 1.2293, the 1.2300 mark and the upper trend line of a channel up pattern.Meanwhile, a potential decline of the pair might look for support in the 1.2200 mark and the 50-hour simple moving average near 1.2170. Further below, take into account the 1.2150 level and the weekly simple pivot point together with the 100-hour simple moving average near 1.2125.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has been breaking one resistance after another. Namely, the upper trend line of the first half of 2022 channel down pattern was broken. On Monday, August 1, the 50-day simple moving average was breached.In regards to the near term future, take into account that the 100-day simple moving average was strengthening the 1.2400 mark's resistance.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday, traders were slightly long, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 53% to buy the GBP/USD.
On Monday, the situation changed, as only 51% of positions were long and pending orders were 54% to buy.
On Friday, traders were slightly long, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 53% to buy the GBP/USD.
On Monday, the situation changed, as only 51% of positions were long and pending orders were 54% to buy.