Economic Calendar
This week, the market could move due to a couple of scheduled macroeconomic data releases.
On Tuesday, the US Institute for Supply Management Manufacturing Purchasing Managers Index could move the markets via the US Dollar at 14:00 GMT. However, at the same time, the JOLTS Job Openings numbers will be out. The two releases can double their impact or cancel one another.
On Wednesday, the US Dollar could adjust to the publication of the ADP Non-Farm Employment Change at 12:15 GMT.
On Thursday, the Institute for Supply Management will publish the Services sector Purchasing Managers Index at 14:00 GMT. Large deviation from the forecast could cause a USD move
The top event of the week is scheduled for Friday. At 12:30 GMT, the US monthly employment data sets will be published. The release consists of the Average Hourly Earnings change, the Non-Farm Employment Change and the Unemployment Rate.
GBP/USD hourly chart analysis
A breaking above the 1.3435 level might result in the pair encountering resistance at the 1.3450 level and the weekly R1 simple pivot point at 1.3454. Higher above, note the 1.3500 mark and the weekly R2 simple pivot point at 1.3537.In the case of a Pound's decline against the US Dollar, the rate is expected to look for support in the 50 and 100-hour simple moving averages. If the SMAs fail, the combination of the weekly simple pivot point and the 200-hour SMA might stop a decline near 1.3350, before the pair reaches the 1.3300/1.3315 zone.
Hourly Chart
GBP/USD daily candle chart analysis
Prior analysis: "On the daily candle chart, the rate has broken the resistance of the August high levels. The broken range could turn into support." Last week, the zone had turned into support.In regard to the future, the 1.3600 level could e the next target for the surge. This level acted as resistance in February 2022.
Read More: Technical Analysis
Traders reduce bearish positions
On Monday, trader open position volume showed that 69% of trader open positions were short.
Meanwhile, pending orders 100-points around the rate were 51% to buy.
Wednesday, traders were 71% short, but pending orders were 74% to buy.
In general, traders have been shorting throughout most of the ongoing surge. It appears that some are capitulating and taking the loss.
Meanwhile, pending orders 100-points around the rate were 51% to buy.
Wednesday, traders were 71% short, but pending orders were 74% to buy.
In general, traders have been shorting throughout most of the ongoing surge. It appears that some are capitulating and taking the loss.