The rate's two attempts to pass the 1.3800 mark failed and a decline followed. On Wednesday morning, the GBP/USD currency exchange rate found support in the lower trend line of the channel up pattern, which has guided the pair since August 19.
Economic Calendar
This week, the GBP/USD could be impacted by the release of the US ISM Manufacturing Purchasing Managers Index release on Wednesday at 14:00 GMT.
The top day for fundamental event watchers will be Friday. On Friday, at 12:30 GMT the US will release the country's monthly employment data. Later on, at 14:00 GMT, the US ISM Services Purchasing Managers Index is set to be out.
Most impact is expected from the US employment data release. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD short-term review
If the rate continues to recover from the lower trend line of the channel up pattern, the GBP/USD would face technical resistance. The 55-hour simple moving average at 1.3760 and the 1.3800 previous high level are expected to provide resistance. Above these levels, the weekly R1 simple pivot point at 1.3826 could provide additional resistance to a possible surge.However, in the case that the rate decline, it would look for support in the 100-hour simple moving average at 1.3746 before reaching the lower trend line of the channel up pattern at 1.3740. Below these levels, the weekly simple pivot point at 1.3720 together with the 200-hour simple moving average could keep the pair from declining.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has approached and is testing the resistance of the 200-day simple moving average, which is located at the 1.3800 level.Meanwhile, the rate was being approached by the additional technical resistance of the 55-day simple moving average at 1.3820.
Daily chart
Read More: Technical Analysis
Traders are neutral
Since Tuesday, traders were neutral, as 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell.
Since Tuesday, traders were neutral, as 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell.