Next week, watch the US ISM services PMI release on Wednesday at 14:00 GMT. Besides this release, there are no notable events scheduled that can impact the financial markets.
GBP/USD short-term view
An extension of the ongoing decline could look for support in the 1.2620 and 1.2600 levels. Further below, note the 1.2545/1.2565 range, which marks the August low levels.However, a recovery of the Pound against the US Dollar would have to break the combination of the 50-hour SMA and the 1.2700 mark, before testing the weekly R1 at 1.2732 and the 1.2750 level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD pair is confirming the 1.2610/1.2670 range as resistance. The range acted as support throughout the first half of August.A continuation of the broader decline could result in the rate looking for support in the 1.2300/1.2450 range and the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders are bullish on GBP
On Friday, open GBP/USD positions by Swiss Foreign Exchange traders were 57% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 53% to sell.
On Friday, open GBP/USD positions by Swiss Foreign Exchange traders were 57% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 53% to sell.