On Wednesday, the ADP Non-Farm Employment Change, JOLTS Job Openings and ISM Manufacturing PMIs might cause moves in the USD. The releases will occur at 13:15 GMT and 15:00 GMT.
Afterwards, at 19:00 GMT, the US Federal Reserve is set to hike its Federal Funds Rate. The central bank is expected by the markets to increase its interest rate from 4.50% up to 4.75%. The announcement will be followed by a press conference of the Chairman of the Federal Reserve Jerome Powell at 19:30 GMT.
On Thursday, the Bank of England is expected to hike its interest rate from 3.50% up to 4.00% at 12:00 GMT.
On Friday, the US monthly employment data will be published at 13:30 GMT. The release will consist of Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD short-term view
A move below the 1.2300 level might result in the rate looking for support in the weekly S1 simple pivot point at 1.2290. Further below, take into account the two support and resistance zones, which are close by one to another. 1.2253/1.2263 and 1.2241/1.2246 are expected to act as support.Meanwhile, a recovery of the Pound against the US Dollar could encounter resistance in the combination of the 50, 100 and 200-hour simple moving average and the weekly simple pivot point at 1.2340 and 1.2370. Higher above note the 1.2400 mark.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair trades between a resistance zone at 1.2305/1.2455 and support zone at 1.1740/1.1840. The pair has been located in the resistance zone since January 17.Meanwhile, the 50-day simple moving average is catching up with the pair.
Daily chart
Read More: Technical Analysis
Traders close short positions
Before the Fed rate hike, traders were 55% bearish, as 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 56% to sell the GBP/USD.
On Tuesday, the sentiment was 57% short and pending orders were 52% to buy.
Before the Fed rate hike, traders were 55% bearish, as 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 56% to sell the GBP/USD.
On Tuesday, the sentiment was 57% short and pending orders were 52% to buy.