Starting with Tuesday, the scheduled fundamental events will start to impact the financial markets. At 15:00 GMT, the CB Consumer Confidence could impact the US Dollar's value.
On Wednesday, various US events are expected to cause market moves. At 13:15 GMT, the US ADP Non-Farm Employment Change might cause a minor USD move.
Afterwards, at 13:30 GMT, the US Preliminary Quarterly GDP is set to reveal whether the United States remain in a recession.
The day will end with a speech of the US Federal Reserve Chairman Jerome Powell at the Brooking Institution in Washington at 18:30 GMT.
On Thursday, note the Core PCE Price Index release at 13:30 GMT. The US monetary policymakers watch this index as a measure of inflation, not the Consumer Price Index.
Afterwards, the US ISM Manufacturing PMI could impact the US Dollar's value at 15:00 GMT.
The week is set to end with the release of the United States employment data at 13:30 GMT. The data release consists of the US Average Hourly Earnings changes, Non-Farm Employment Change and Unemployment Rate.
GBP/USD short-term view
If the Pound recovers against the US Dollar, it would have to break the combined resistance of the 1.2050 level and the 50 and 100-hour simple moving averages. Higher above, note that the 1.2100 and 1.2150 levels have acted as resistance.On the other hand, a decline of the GBP/USD might once again look for the support in the 1.1940/1.1960 zone and the 200-hour simple moving average. Further below, note the 1.1900 mark, the weekly S1 simple pivot point at 1.1869 and the 1.1850 level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has broken the resistance of the 200-day simple moving average. Most recently, the SMA has started to act as support.Higher above, note the summer high level zone at 1.2275/1.2330. It could stop the ongoing surge.
Daily chart
Read More: Technical Analysis
Traders are mostly short
On Tuesday, traders were bearish, as 62% 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 56% to sell the GBP/USD.
On Tuesday, traders were bearish, as 62% 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 56% to sell the GBP/USD.