The GBP/USD has continued to respect the resistance zone of the 1.3740/1.3760 levels. On Monday, the rate had retreated from the resistance zone and approached the lower trend line of the rising wedge pattern.
The near term future was dependant on whether or not the trend line holds.
Economic Calendar
On Monday, the US ISM Manufacturing PMI at 15:00 GMT could cause a move. The GBP/USD has moved from 12.7 to 29.5 base points on the publication since September.
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move from 11.8 to 38.4 pips.
At 12:00 GMT on Thursday, the Bank of England is set to announce its official bank rate. The GBP/USD has moved from 23.6 to 73.1 pips on the announcement.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT. The data has caused moves from 9.6 to 14.9 pips.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The GBP/USD has moved 18.5 to 24.2 pips since September.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
The near term future depended on whether or not the rate manages to pass the support of the ascending wedge pattern.In the case of the pattern holding, the rate would face the resistance of the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point in the range from 1.3695 to 1.3710. However, note that these levels have been failing in the recent past. Due to that reason, if these levels fail again, the 1.3740/1.3760 zone could be reached.
If the rate passes the support of the trend line, it would reach for the weekly S1 simple pivot point at 1.3629.
Hourly Chart
On the daily candle chart, the pair appears to be consolidating by trading sideways around the 1.3700 level. The sideways trading could continue until a fundamental event causes a drop or surge.
In the meantime, note that the 55-day simple moving average was approaching the rate from below. On Monday, it was located at the 1.3389 level. This SMA has been capable of pushing the rate up. It could approach the sideways trading rate and push it up.
Daily chart
Read More: Technical Analysis
Traders are mostly short
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 68% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to buy the GBP/USD pair.
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 68% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to buy the GBP/USD pair.