Economic Calendar
On Thursday, the Institute for Supply Management will publish the Seervices sector Purchasing Managers Index at 14:00 GMT. Large deviation from the forecast could cause a USD move
The top event of the week is scheduled for Friday. At 12:30 GMT, the US monthly employment data sets will be published. The release consists of the Average Hourly Earnings change, the Non-Farm Employment Change and the Unemployment Rate.
GBP/USD hourly chart analysis
If the pair breaks above 1.3300, it is set to face the combined resistance of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.3351. These levels have to be broken, before the rate approaches the 1.3400 mark and the high level range at 1.3425/1.3435.In the case of a decline, the rate will look for support in the weekly S1 at 1.3268 and the 1.3250 level. Further below, the rate is set to look for support in the 1.3220/1.3230 level, prior to reaching 1.3200.
Hourly Chart
GBP/USD daily candle chart analysis
Prior analysis: "On the daily candle chart, the rate has broken the resistance of the August high levels. The broken range could turn into support." Last week, the zone had turned into support and contined to provide support this week.In regards to the future, the 1.3600 level could be the next target for the surge. This level acted as resistance in February of 2022.
Read More: Technical Analysis
Traders continue to cut short exposure
On Monday, trader open position volume showed that 69% of trader open positions were short.
Meanwhile, pending orders 100-points around the rate were 51% to buy.
Wednesday, traders were 57% short, but pending orders were 56% to sell.
Traders have been reducing short position amount since last week.
Meanwhile, pending orders 100-points around the rate were 51% to buy.
Wednesday, traders were 57% short, but pending orders were 56% to sell.
Traders have been reducing short position amount since last week.