This week, traders will be initially looking at the ISM Manufacturing Purchasing Managers Index survey results on Wednesday at 14:00 GMT. The publication is set to reveal how the US Manufacturing industry is looking at the future and with it impact the value of the US Dollar.
On Thursday, minor USD moves could occur due to the ADP Non-Farm Employment Change at 12:15 GMT and the US Unemployment Claims at 12:30 GMT. Minor moves are usually around ten to fifteen base points.
On Friday, one of the top events of the whole market will occur. Namely, the release of the US employment data at 12:30 is set to shake up the market. The release will consist of the US Unemployment Rate, Average Hourly Earnings Change and the Non-Farm Employment Change.
GBP/USD short-term review
If the Pound declines against the US Dollar below the 1.2560 mark, the currency exchange rate might look for support in the weekly S1 simple pivot point at 1.2510 and the 1.2500 mark.On the other hand, a recovery of the currency exchange rate could find resistance in the 200-hour SMA near 1.2580, the weekly simple pivot point at 1.2588. Higher above, note the 1.2600 level and the combination of the 50 and 100-hour simple moving average near 1.2610.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed above the resistance line of the larger scale channel down pattern, which has guided the rate's decline since early February. Moreover, the pair confirmed the previous resistance as support.Next target for the surge was the 50-day simple moving average near 1.2700. Higher above, note the March and April support zone near 1.3000. Namely, the 1.3000 mark could act as resistance.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, traders were 54% bearish, as 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 73% to sell the GBP/USD.
On Monday, the open positions were 64% long and pending orders were 64% to buy.
On Wednesday, traders were 54% bearish, as 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 73% to sell the GBP/USD.
On Monday, the open positions were 64% long and pending orders were 64% to buy.