This week, the markets will watch the US Employment data release. It is scheduled for Friday 12:30 GMT. The data release moves all of the financial markets, as it causes a move in the US Dollar.
US Employment data release consists of the US Average Hourly Earnings change, Non-Farm Payrolls and Unemployment rate.
GBP/USD hourly chart analysis
A recovery of the pair is expected to occur in the borders of a channel up pattern. Although, resistance is set to be once again encountered in the 1.2800 mark and the weekly R1 simple pivot point at 1.2800. Above this level, the weekly R2 at 1.2860 level and the upper trend line of the channel up pattern could act as resistance.On the other hand, a decline would have to reach below the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.2740, and the lower trend line of the channel pattern. If these levels fail, the 1.2700 is most likely going to act as support.
Hourly Chart
GBP/USD daily candle chart analysis
The surge has reached the resistance of a long ago marked resistance zone. We investigated the range and found that certain levels act as resistance. Resistance is provided by the 1.2800, 1.2830, 1.2850 and 1.2900 levels. At these levels major reversals have happened that have started moves that lasted from a month up to a whole quarter.
The GBP/USD could be at a major turning point. Due to this reason watch the ascending channel closely for potential breaking of it and the establishment of a new pattern.
Read More: Technical Analysis
Traders are shorting
On Monday, traders were 69% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 54% to sell.
During late Tuesday's trading hours, the positions were 73% short and orders were 62% to sell.
Meanwhile, pending orders in the 100-pip range around the rate were 54% to sell.
During late Tuesday's trading hours, the positions were 73% short and orders were 62% to sell.