Economic Calendar
The financial markets might move on Wednesday, at 18:00 GMT. At that time the Federal Reserve Meeting Minutes will be published. The minutes is a protocol of the prior meeting held by the Federal Open Markets Committee on the US monetary policy. New information might cause an adjustment of the US Dollar's value.
On Thursday, moves could be created by the publication of the UK and US S&P Global Services and Manufacturing sector Purchasing Managers Index numbers.
However, reaction could be muted, as markets wait for the Friday's Jerome Powell's speech at the Jackson Hole Symposium at 14:00 GMT.
GBP/USD hourly chart analysis
A continuation of the surge would have to break the channel's trend line, before approaching the resistance of the 1.3000 mark and the weekly R1 simple pivot point at 1.3009. If the pair moves above the 1.3000 level, the pair might stop at the 2024 high level at 1.3045.In the case of a decline of the Pound against the US Dollar, support is expected to be looked for in the 1.2900 mark and the 50-hour simple moving average. In addition, take into account the weekly simple pivot point at 1.2878 and the 100-hour SMA. If these levels fail to hold, the 1.2850/1.2870 range is expected to act as support.
Hourly Chart
GBP/USD daily candle chart analysis
The GBP/USD found enough support in the 100 and 200-day simple moving averages and has recovered to face the 50-day simple moving average and the 1.2800/1.2850 range.Most recently, the pair passed above the 1.2900 mark. Next target could be the 1.3000 level.
Read More: Technical Analysis
Traders hold onto short positions
On Monday, traders were shorting, as 70% of open position volume at Dukascopy was in short positions.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 59% to buy.
On Friday, traders were 72% short. Meanwhile, pending orders were 54% to buy the GBP against the USD.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 59% to buy.
On Friday, traders were 72% short. Meanwhile, pending orders were 54% to buy the GBP against the USD.