On Tuesday, The GBP/USD reached the support of the weekly S1 and the lower trend line of a channel down pattern on Monday. However, the decline was quickly reversed by a US fundamental survey result release.
On Wednesday, the rate was once more heading to the support of the weekly S1 at 1.2209.
US ISM Manufacturing PMI
The Institute for Supply Management released the US ISM Manufacturing PMI survey data results, which came out worse-than-expected of 47.8 compared to the forecast of 50.4.
The Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee Timothy R. Fiore commented: "Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth."
Economic Calendar
On Wednesday, the ADP Non-Farm Employment Change is set to be published at 12:15 GMT. This release has lost its significance during the last year, as it has caused moves from 6.8 to 28.4 pips since October 2018.On Thursday, at 14:00 GMT the ISM Non-Manufacturing PMI is scheduled to be published. This release has caused rate adjustments on the GBP/USD from 8.8 to 22.6 pips since September 2018.
The week will end with the biggest event of the month in the US, the employment data publication, on Friday at 12:30 GMT. The release will consist of three data sets being published. The Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 14.8 to 34.1 pips on the GBP/USD charts since May 2019.
All of the historical reaction data tables to all notable data releases have been published in a separate publication. To see the publication, click on the link below.
GBP/USD short-term review
On Wednesday morning, the GBP/USD was heading to the support of the weekly S1, which was located at 1.2209.If the rate passes this support level, it could next test the lower trend line of the descending channel pattern below 1.2200.
On the other hand, the support might hold and the rate would trade sideways above the 1.2209 mark.
Hourly Chart
On the daily candle chart, the rate had passed the support of the 55-day simple moving average at 1.2280. Due to that reason it is expected to strengthen the resistance of the monthly pivot point at that level.
Daily chart
During the early hours of Wednesday's trading session, the sentiment had become 56% long.
Meanwhile, trader orders were to buy. In the 100-pip range 70% of orders were to buy and 30% were to sell. Previously, the orders were 56% to buy.