The GBP/USD pair touched the 1.3450 mark at mid-day on Monday. However, the round exchange rate level acted as resistance and caused a retracement to the 1.3400 level and the 50-hour simple moving average. In the meantime, some resistance was being provided by the 100-hour simple moving average and the weekly simple pivot point near 1.3440.
Economic Calendar
On Tuesday, the US ISM Manufacturing Purchasing Managers Index release at 15:00 GMT could cause USD moves.
On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be published. The event might cause minor USD volatility.
On Thursday, the Bank of England will release its Monetary Policy Summary at 12:00 GMT. Expect GBP volatility, as the bank already started to hike interest rates in December.
The day will end with the US ISM Services PMI, which might cause minor volatility.
On Friday, the US is going to publish employment data at 13:30 GMT.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
In the case that the pair surges and passes the 1.3450 mark, it would face no technical resistance as high as the 1.3500 mark. At that level, note the 200-hour simple moving average. Higher above, the weekly R1 simple pivot point at 1.3528 might stop a surge.Meanwhile, a potential decline is highly likely going to look for support in the 50-hour simple moving average and the 1.3400 level. Below these levels, the pair might find support in the 1.3360/1.3375 zone.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has declined below the support of the 50-day simple moving average and the 1.3412 mark, which represents the September low level. The next target for the pair could be the 1.3200 mark.Daily chart
Read More: Technical Analysis
Traders are short
On Monday, traders were mostly bearish, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP against USD.
On Friday, the sentiment became 58% short, and the orders were 60% to buy.
On Monday, traders were mostly bearish, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP against USD.
On Friday, the sentiment became 58% short, and the orders were 60% to buy.