The GBP/USD has passed the support of the 55-hour SMA and broken an ascending pattern.
By the middle of Monday's trading the rate had reached technical support levels that were located just above the 1.2910 level.
US ISM Manufacturing PMI
The Institute for Supply Management (ISM) released the US ISM Manufacturing PMI survey results, which came out worse-than-expected of 48.3 compared with the forecast of 49.0.
Timothy R. Fiore, the Chair of the ISM Manufacturing Business Survey Committee commented on the release: "Global trade remains the most significant cross-industry issue. Food, Beverage & Tobacco Products remains the strongest industry sector and Transportation Equipment the weakest sector. Overall, sentiment this month remains cautious regarding near-term growth."
Economic Calendar
Main attention this week will be set on the Bank of England rate announcement. The rate statement is scheduled for Thursday 12:00 GMT. The announcement has caused immediate moves on the GBP/USD from 18.6 to 43.5 pips since February.In addition, on Tuesday there is another event scheduled that might impact the GBP/USD pair.
On Tuesday, at 15:00 GMT the US ISM Non-Manufacturing PMI is set to be released. The release has caused moves from 8.8 to 37.8 pips.
Meanwhile, take into account that the next week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate declined to the 1.2940 mark. During Monday morning, the rate was trading at the given level.Note that the currency pair is pressured by the 55-hour SMA at 1.2944. Therefore, some downside potential could prevail in the market. In this case the pair would have to surpass the support cluster formed by the 100- and 200-hour SMAs, as well the Fibo 38.20% and the weekly PP in the 1.2885/1.2918 range.
However, if the given resistance level does not hold, the exchange rate could reverse north in the nearest future. In this case the British Pound could try to exceed the 1.2980 level against the US Dollar.
Hourly Chart
On the daily candle chart, the rate remains in the borders of a large scale ascending channel pattern. It is surging in its borders.
Meanwhile, the daily simple moving averages have been left far below the exchange rate. It is a signal that the GBP/USD is overbought. However, with the Brexit in the background, long term overbought and oversold indicators should better be ignored.
Daily chart
Meanwhile, trader orders were mostly bearish. In the 100-pip range, 62% of orders were to sell and 38% were to buy.
Previously, the orders were 82% to sell.