This week, the financial markets could be moved by fundamental data releases starting from Tuesday. On that day, the JOLTS Job Openings data could impact the value of the US Dollar.
On Wednesday, the top event of them all is set to take place. The release of the US Federal Reserve Federal Funds Rate and the FOMC Statement at 19:00 GMT. Afterwards, at 19:30 GMT, the head of the Federal Reserve Jerome Powell is set to host a press conference.
Note that the ADP Non-farm Employment Change publication is also scheduled for Wednesday. It is most likely that I won't cause an impact, as the markets will wait for the Fed rate.
Meanwhile, the Bank of England is also set to release its base interest rate during this week. On Thursday, at 12:00 GMT the Bank of England will publish its Official Bank Rate.
On Thursday, the US ISM Manufacturing Purchasing Managers Index is set to be published at 15:00 GMT. A big deviation from the forecast could cause a market reaction
On Friday, at 13:30 GMT, the US Employment data sets will be released and they are set to impact the market. The release consists of Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings month on month difference.
GBP/USD hourly chart analysis
Support is likely set to find support in the 1.2680 level. Further below, note the 1.2650/1.2660 range and the weekly S1 simple pivot point at 1.2643. If all of these levels are passed, the GBP/USD could reach the 1.2600 level and the impact zone that surrounds it.However, a strengthening of the Pound against the US Dollar is set to face the combined resistance of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at the 1.2710 level. Above the technical level combo, note the resistance range at 1.2760/1.2770 and the weekly R1 simple pivot point at 1.2768.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, additional support appears to be provided by the 50-day simple moving average at 1.2640. In addition, note the 200-day SMA at 1.2560.Daily chart
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Traders are long
On Monday, traders were 53% long, as that proportion of all open positon volume on Swiss Foreign Exchange was in long positions.
Meanwhile, pending orders in the 100 pip range around the rate were 52% to buy.
Meanwhile, pending orders in the 100 pip range around the rate were 52% to buy.