On Monday, the surge of the GBP/USD reached above the resistance zone that is located below the 1.3600 mark and the 200-hour simple moving average.
However, after the surge, the pair retraced back down and up to Tuesday's European morning the rate traded above the mentioned technical levels.
Economic Calendar
On Tuesday, the US ISM Services PMI at 14:00 GMT could impact the value of the US Dollar and all USD currency exchange rates. The event has moved the GBP/USD from 9.3 to 26.9 base points since May 2021.
On Wednesday, the ADP Non-Farm Employment Change at 12:15 GMT might cause USD volatility. The pair has moved from 12.5 up to 18.3 pips on the release since May 2021.
On Thursday, the weekly US Unemployment Claims at 12:30 GMT might cause a minor move in the USD. The GBP/USD has moved from 6.6 to 18.3 pips on the releases that occurred in September.
On Friday, at 12:30 GMT, the US employment data sets will be out. Namely, the Average Hourly Earnings change, the Non-Farm Employment Change and the monthly Unemployment Rate are bound to impact the value of the US Dollar.
The pair has reacted to the US employment data since May 2021 with moves from 35.2 to 76.4 base points.
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
If the support levels cause a surge, the GBP/USD would most likely reach for the weekly R1 simple pivot point at 1.3714. Although, note that the 1.3650 mark could provide resistance and slow down a potential surge.On the other hand, a passing of the 200-hour SMA and the support zone below the 1.3600 level would almost immediately find additional support in the weekly simple pivot point at 1.3563 and the 55-hour simple moving average at 1.3560. Below these technical levels, the 100-hour SMA might serve as support at 1.3515.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has recovered and passed the resistance of the July and August low level zone. Meanwhile, the 55, 100 and 200-day simple moving averages were located at 1.3765, 1.3842 and 1.3869.Daily chart
Read More: Technical Analysis
Long sentiment drops
On Friday, traders were long, as 64% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the sentiment was 58% long. By the middle of Tuesday's trading, the sentiment was 54% long.
Meanwhile, on Tuesday, in the 100-pip range around the rate the pending orders were 73% to sell.
The orders were 60% to sell on Monday.
On Friday, traders were long, as 64% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the sentiment was 58% long. By the middle of Tuesday's trading, the sentiment was 54% long.
Meanwhile, on Tuesday, in the 100-pip range around the rate the pending orders were 73% to sell.
The orders were 60% to sell on Monday.