The 1.4000 mark held and forced the rate into a decline. It appeared on Thursday, that the rate could end the week by having traded up and down in the 1.3870/1.4000 zone.
In the near term future, the rate was expected to look for support in 1.3870.
Economic Calendar
On Wednesday, the US ADP Non-Farm Employment Change at 13:15 GMT will be on the headlines. However, by large, the market does not care, as since December 2 the rate has moved only 8.0 to 16.7 pips on the release.
On the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI could cause a move from 11.8 to 38.4 pips.
On Friday, at 13:30 GMT the US will publish its monthly employment data. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. The GBP/USD has moved from 18.5 to 29.3 pips on the publication since October.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
The GBP/USD has once again bounced off the resistance of the 1.4000 mark. The rate appears to be trading flat this week between the 1.3850 and 1.4000 level. In the meantime, the 100-hour simple moving average approached the rate and failed to provide any impact on it.In the near term future, the rate is expected to reach for the support of the zone that surrounds the 1.3850 mark. If this zone gets passed, the rate could aim at the weekly S1 simple pivot point at 1.3804.
On the other hand, if the 1.3850 zone holds again, the pair could test the resistance of the 1.4000 for another time.
Hourly Chart
On the daily candle chart, the rate is retracing back down, as it consolidates after reaching the 1.4200 mark.
In the meantime, note how the surge has occurred by being pushed up by the 55-day SMA. The rate overextended its surge when it reached the 1.4200 mark and moved too far away from the SMA. Due to that reason it became overbought.
Daily chart
Read More: Technical Analysis
Short sentiment is intact
Since Wednesday, 62% of trader open position volume on the Swiss Foreign Exchange was in short positions. Traders were waiting for a retracement back down.
On Tuesday, the sentiment was 64% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 72% to buy the GBP/USD pair. These could be the take profits and stop losses of the short traders.
Since Wednesday, 62% of trader open position volume on the Swiss Foreign Exchange was in short positions. Traders were waiting for a retracement back down.
On Tuesday, the sentiment was 64% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 72% to buy the GBP/USD pair. These could be the take profits and stop losses of the short traders.