On Monday, the GBP/USD traded between hourly simple moving averages, which provided both resistance and support.
The near term future was based upon whether the rate passes the resistance of the 55 and 100-hour SMAs or the support of the 200-hour SMA.
Economic Calendar
On Tuesday, the GBP/USD currency exchange rate could be impacted by the 15:00 GMT publication of the US ISM Manufacturing PMI. The pair has moved from 11.1 to 29.5 pips on the release since July.
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The GBP/USD has moved from 18.5 to 32.4 pips on the announcement.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
The GBP/USD traded on Monday in the 1.3300/1.3350 range. In the meantime, the pair was being influenced by the resistance and support of the hourly simple moving averages. Namely, the 55 and 100-hour SMAs were providing resistance, as the 200-hour SMA provided support.In the near term future, if the pair passes the resistance of the 55 and 100-hour SMAs, the GBP/USD would once again test the resistance zone from 1.3380 to 1.3400.
On the other hand, if the 200-hour SMA fails to provide support, the rate could first test the support of the 1.3300 mark and afterwards the weekly S1 simple pivot point at 1.3257.
Hourly Chart
On the daily candle chart, the rate has broken the narrow channel up pattern, which guided it throughout November.
Daily chart
Read More: Technical Analysis
Short sentiment declines
Since Thursday, 68% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the situation changed, as 62% of open position volume was in short positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 79% to sell the GBP/USD pair.
On Friday, the orders were 52% to buy the pair.
Since Thursday, 68% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the situation changed, as 62% of open position volume was in short positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 79% to sell the GBP/USD pair.
On Friday, the orders were 52% to buy the pair.