The GBP/USD exchange rate touched the 1.2980 level, however, it reversed north.
It is likely that the rate could gain support from the 55- and 100-hour SMAs and trade upwards.
Economic Calendar
The first week of August is going to be relatively busy on the economic calendar.
On Wednesday, the US ADP Non-Farm Employment Change data is set to be issued at 12:15 GMT. Additionally, the US ISM Non-Manufacturing PMI survey results are set to be published at 14:00 GMT.
On Thursday, it is likely that the markets could be affected by the BOE Monetary Policy Report, which will be released at 11:00 GMT. Later that day, the US Unemployment Claims data is going to be published at 12:30 GMT.
On Friday, the US Employment data set release could be in the spotlight. The release is scheduled to 12:30 GMT.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate pierced the weekly PP at 1.3013, however, reversed north. During Wednesday morning, the rate was trading at 1.3100.It is likely that the currency pair could gain support from the 55– and 100-hour SMAs near 1.3070 and trade upwards in the short run. In this case the pair could try to exceed the psychological level at 1.3150.
If the given level holds, it is likely that the British Pound could trade sideways against the US Dollar in the nearest future. Otherwise, it is likely that the rate could re-test the 2020 high at 1.3213.
Hourly Chart
On the daily candle chart, the rate has been trading at the psychological level at 1.3100 since the beginning of current week.
In the meantime, it is likely that the rate is in the overbought area, as it is trading far above the 55-, 100- and 200-day moving averages.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 53% of pending orders were set to sell the GBP/USD pair.
On Wednesday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 53% of pending orders were set to sell the GBP/USD pair.