On Monday, the GBP/USD currency exchange rate was testing the support of the 1.2750 level, which was initially reached on Friday.
In the case of the 1.2750 mark not holding, the rate could reach as low as the 1.2700 mark.
Economic Calendar
Already on Monday, a data release could cause a notable move on the GBP/USD charts.
The US ISM Manufacturing PMI is scheduled to be published at 15:00 GMT. This event has caused moves from 14.3 to 28.9 pips since October.
Some might consider watching the ADP Non-Farm Employment Change on Wednesday at 13:15 GMT. This event has mostly caused moves from 11.8 to 20.0 base points.
On Wednesday, at 15:00 GMT the US ISM Non-Manufacturing PMI is set to be published. Last year, this event caused moves from 23.6 to 37.8 pips. This year, there were two moves of 11.9 and 20.6 pips.
On Friday, the US employment data will be released at 13:30 GMT. The event has caused moves from 16.2 to 51.3 pips since October.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Meanwhile, week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 02.03-06.03 Event Historical Reactions
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate broke the lower boundary of the medium-term descending channel. During Monday morning, the rate was testing the 1.2750 level.On the one hand, it is likely that some downside potential could prevail in the market. In this case the currency pair could gain support of the weekly S1 at 1.2692.
However, if the 1.2750 level holds, it is likely that a reversal north could occur in the nearest future. In this case the exchange rate could face the resistance formed by the 55-hour SMA and the weekly PP at 1.2856.
Hourly Chart
On the daily candle chart, the rate has close by the support of the 200-day simple moving average, which was strengthening the weekly S1 pivot point near 1.2700.
Daily chart
Read More: Technical Analysis
Traders go long on GBP/USD
On Monday, 52% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions. Previously, the sentiment was 51% short
Meanwhile, trader orders were neutral. In the 100-pip range, 49% of orders were to buy and 51% were sell orders.
Meanwhile, trader orders were neutral. In the 100-pip range, 49% of orders were to buy and 51% were sell orders.