This week, on Tuesday at 14:00 GMT, the US Institute for Supply Management Purchasing Managers Index could impact the financial markets through the reveal of the situation in the US services sector and subsequently the US Dollar's value.
GBP/USD short-term view
In theory, the pair might now retrace back above 1.1500, where it could encounter resistance in the 50-hour simple moving average or the 1.1550 mark. Afterwards, a resumption of the decline would have to pass the weekly S1 simple pivot point at 1.1411, before reaching the 1.1400 level.On the other hand, a move above 1.1550 might signal that the decline is over. However, take into account the resistance of the weekly simple pivot point and the 100-hour simple moving average near 1.1585. Higher above, the 1.1600 and 1.1650 levels are expected to act as resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the currency pair has additional support. Namely, the 2020 March low level at 1.1415 is expected to impact the pair. Below the low level, note the lower trend line of the 2022 channel down pattern.Daily chart
Read More: Technical Analysis
Traders set up buy orders
On Friday, traders were bullish, as 69% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 56% to sell the GBP/USD.
On Monday, open positions were 69% long and pending orders were 55% to buy.
On Friday, traders were bullish, as 69% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 56% to sell the GBP/USD.
On Monday, open positions were 69% long and pending orders were 55% to buy.