On Friday, the pair found support at 1.2600 and started a surge that by mid-Monday had reached 1.2680. It was spotted that Dukascopy traders were 58% long on Friday. On Monday, positions were closed, as positions were 52% short. Economic Calendar
During the week, noteworthy events start on Tuesday at 15:00 GMT, as at that time the US Institute for Supply Management Services sector Purchasing Managers Index is set to be released.
On Wednesday, at 13:15 GMT the US ADP Non-Farm Employment Change could impact the markets by revealing surprise information about the US job market. In addition, on the same day at 15:00 GMT, the JOLTS Job Opening data will show, how many jobs are open. The data indicates, how active the economy is.
Top event of the week is scheduled for Friday at 13:30 GMT. The United States employment data sets are going to impact the financial markets. The release consists of Average Hourly Earnings change, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD hourly chart analysis
The rate could pass above 1.2680 and face the 1.2700 mark that is strengthened by the weekly R1 simple pivot point. A move above 1.2710 might encounter resistance in the weekly R2 simple pivot point at 1.2750 and the 1.2760/1.2775 range.If the Pound declines against the US Dollar, the rate could look for support in the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 1.2645/1.2660 range. Below these levels, the 1.2590/1.2610 range and the weekly S1 at 1.2602 are highly likely to act as support.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the rate is above the 100 and 200-day simple moving averages. The pair appears to have been reversed by the 100-day SMA.In regards to resistance, the 50-day simple moving average is acting as resistance. This moving average acted as support during the second part of January.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday, traders were 58% long, as that proportion of all open positon volume on Swiss Foreign Exchange was in bullish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 52% to buy.
By mid-Monday, traders were 52% short and orders were 51% to sell. Traders had taken profit.
Meanwhile, pending orders in the 100-pip range around the rate were 52% to buy.
By mid-Monday, traders were 52% short and orders were 51% to sell. Traders had taken profit.