Economic Calendar br> The week will be calm. There are no events that could impact the rate up to Friday.
On Friday, the publication of the Manufacturing and Services sector Purchasing Managers Indices could cause an adjustment in currencies.
UK PMIs are schedueld to be published at 09:30 GMT. The Pound could move due to a large deviation of the indices from the market consensus forecasts.
The US PMIs will be out at 13:45 GMT. In most cases, the reaction to the publication is minor or the PMI publication turn out to be what is called a non-event.
GBP/USD hourly chart analysis
This ongoing recovery of the GBP/USD is set to face the 1.2700 mark and the 100-hour simple moving average. If these levels fail, the weekly simple pivot point will act as resistance at 1.2711. Higher above, take into account the 1.2750 and 1.2800 levels and the descending 200-hour simple moving average.In the case of a resumption of the prior broader decline, the combination of the 50-hour SMA and the 1.2650 level could turn into support. Further below, the 1.2600/1.2620 would once again come into play, before the rate approaches 1.2550 or the combination of 1.2500 and the weekly S1 simple pivot point.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the rate has broken out from being squeezed in between the 100 and 200-day simple moving averages. The pair broke downwards and passed the major support range that is located above 1.2800.Moreover, the lower trend line of the channel down pattern was pierced during later part of last week's trading.
In regards to the future, watch the round levels. The 1.2500 and 1.2300 have been major turning points. If these levels fail to hold, the GBP/USD could approach the late 2023 low levels below 1.2100.
Read More: Technical Analysis
Traders are in long positions
Before elections, Dukascopy trader open position volume showed that 51% of trader open positions were long.
Meanwhile, pending orders 100-points around the rate were 57% to buy.
These orders appeared to be executed, as 58% of open position volume was long, on November 11.
However, the pending orders were still set to buy, as 54% of all the orders were to buy.
These orders were also executed, and even more buying was done, as, on November 18, 70% of positions were long.
In the meantime, only 51% of orders were to buy.
Meanwhile, pending orders 100-points around the rate were 57% to buy.
These orders appeared to be executed, as 58% of open position volume was long, on November 11.
However, the pending orders were still set to buy, as 54% of all the orders were to buy.
These orders were also executed, and even more buying was done, as, on November 18, 70% of positions were long.
In the meantime, only 51% of orders were to buy.