In combination with the strong support of the 1.2590/1.2610 range, the fundamental event caused a surge of the GBP/USD currency exchange rate. By mid-Thursday, the pair had passed above the 50, 100 and 200-hour simple moving averages, the weekly simple pivot point and the 1.2700 mark. Economic Calendar
At the start of 2024, notable events start on Wednesday. At 15:00 GMT, watch the Institute for Supply Management Manufacturing Purchasing Managers Index survey results and the JOLTS Job Openings number. Note that the two releases could cause a major impact, if both shows either better or worse than expected data.
On the same day, some impact could be created by the publication of the Federal Reserve Open Market Committee Meeting Minutes publication. The Meeting Minutes are a protocol of the US monetary policy maker's last meeting. It can reveal additional information on future US base interest rate policy.
On Thursday, the US ADP Non-Farm Employment Change is capable of impacting the markets. The Automatic Data Processing released number usually is a good indicator of what the US government data will show, as it occurs prior to the official publication of employment numbers. The event is scheduled for 13:15 GMT.
On Friday, the US monthly employment data sets will be published. The event is scheduled for 13:30 GMT.
They are bound to impact the financial markets via the value of the US Dollar. Namely, good data reveals that inflation might return and the Fed would have to keep rates high or even cut. This would cause a surge of the Dollar. On the other hand, bad data would weaken the USD, as the Fed can cut rates.
GBP/USD hourly chart analysis
The ongoing recovery of the Pound against the US Dollar could face resistance near the 1.2800 mark. Near that level there is a high level zone at 1.2780/1.2795, the weekly R1 simple pivot point at 1.2812 and the August high level at 1.2819. Note that these levels were pierced during the end of the year decline of the Dollar.On the other hand, a decline of the pair could be slowed down by the 100 and 200-hour simple moving averages near 1.2700. Below 1.2700, the weekly simple pivot point and the 50-hour SMA might act as support near 1.2650. If these levels fail to stop a decline, the 1.2590/1.2610 is expected to once again impact the pair.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the pair has passed below the supporting trend line that had pushed the rate up since early October. In the case of the rate continuing to decline, support might be provided by the combination of the 50 and 200-day simple moving averages near 1.2530.Daily chart
Read More: Technical Analysis
Traders go short
On Wednesday, traders were 57% long, and pending orders in the 100 pip range around the rate were 56% to sell.
On Thursday, 54% of open position volume was in short positions. Meanwhile, pending orders were 54% to sell.
On Thursday, 54% of open position volume was in short positions. Meanwhile, pending orders were 54% to sell.