Since the second part of Tuesday's trading, the GBP/USD has been finding support and resistance in round exchange rate levels. Namely, it found support in 1.3710 and 1.3720 and resistance was provided by 1.3750 and 1.3760.
On Wednesday morning, the rate was approaching the resistance of the 1.3780 level, which was strengthened by the 200-hour simple moving average and the weekly simple pivot point.
Economic Calendar
The week will start on Wednesday with the UK Final GDP at 07:00 GMT. The GBP/USD has moved from 9.8 to 27.6 pips due to this release since December 2019.
On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be released. This event has caused GBP/USD moves from 8.0 to 17.1 pips since November.
On the same day, at 15:00 GMT the US ISM Manufacturing PMI is set to be scheduled. The rate has moved from 12.7 to 16.7 pips on the announcement.
The week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released. Combined they have caused moves from 19.6 to 55.0 pips on the GBP/USD charts.
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
In the case of the 1.3780 level holding, the rate would gradually decline to the support of the 1.3700 level. Note that short term support is expected to be provided by the mentioned round exchange rate levels.On the other hand, a piercing of the 1.3780 level would test the 1.3800 mark and afterwards the 1.3850 level.
Hourly Chart
On the daily candle chart, the rate is trading between the resistance of the 55-day simple moving average and the support of the channel up pattern, which captures the rate's recovery since March 2020.
However, both levels can be pierced, as the rate shortly trades above resistance or below support and afterwards returns to previous levels.
In addition, note the approaching support of the 100-day simple moving average near 1.3630.
Daily chart
Read More: Technical Analysis
Traders are almost neutral
On Wednesday, traders went short, as 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 52% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
The orders were 67% to buy on Tuesday.
On Wednesday, traders went short, as 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 52% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
The orders were 67% to buy on Tuesday.