On Monday morning, the GBP/USD declined below technical levels that surrounded the 1.2320 mark.
Future scenarios were built around what would happen near that level.
US Employment Data
The Bureau of Labor Statistics released the US Unemployment Rate data, which came out better-than-expected of 3.5% compared with the forecast of 3.7%.
According to the official release: "In September, the unemployment rate declined by 0.2 percentage point to 3.5 percent. The last time the rate was this low was in December 1969, when it also was 3.5 percent. Over the month, the number of unemployed persons decreased by 275,000 to 5.8 million."
Economic Calendar
On Tuesday the US PPI release at 12:30 GMT could cause a move. Although, it usually causes a move around ten pips, which is considered insignificant.On Wednesday, the US Federal Reserve Meeting Minutes are set to be published at 18:00 GMT. Since February the event has caused moves from 9.2 to 22.5 base points.
On Thursday, the day will begin with the UK GDP and Manufacturing Production data being released at 08:30 GMT. The event has caused moves from 9.2 to 35.1 base points since May.
On the same day the US CPI will be released at 12:30 GMT. The event has caused moves from 14.8 to 23.0 pips.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
Read More: 07.10-13.10 Event Historical Reactions
GBP/USD short-term review
On Monday morning, the GBP/USD declined below the simple weekly pivot point and the three hourly simple moving averages, which are used by Dukascopy Analytics.In theory, the currency exchange rate should decline and once more test the support of the monthly pivot point at 1.2280. If this level gets passed, the weekly S1 pivot point at 1.2228 could be reached next.
On the other hand, the rate could trade sideways until the SMAs push it through the monthly pivot point.
Hourly Chart
On the daily candle chart, the rate has returned back above the 55-day SMA. Due to the rate bouncing around it, it is suggested to start ignoring this level.
Namely, it can be observed that the support of the SMA failed on October first. Afterwards, the levels resistance was ignored throughout the week.
Meanwhile, the 100-day SMA was approaching the rate from above and could provide technical resistance above the 1.2400 mark.
Daily chart
Read More: Technical Analysis
Traders remain almost neutral
On Monday, 53% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader orders were bullish. In the 100-pip range 65% of orders were to buy and 35% were to sell.
Previously, the orders were 57% to buy.
Meanwhile, trader orders were bullish. In the 100-pip range 65% of orders were to buy and 35% were to sell.
Previously, the orders were 57% to buy.