In general, the GBP/USD has traded sideways since Monday morning. Although, the rate had shortly touched the low level of 1.2260 on Tuesday morning.
In the near future, the rate was expected to face the resistance of the 100-hour simple moving average, which was approaching the pair from above.
Economic Calendar
This week, there are a couple of US macroeconomic data releases, which might impact the rate.On Tuesday, the US ISM Manufacturing PMI is set to be released at 14:00 GMT. The event has caused moves from 13.2 to 26.7 pips on the GBP/USD. The largest reaction was on the last release.
On Wednesday, the ADP Non-Farm Employment Change is set to be published at 12:15 GMT. This release has lost its significance during the last year, as it has caused moves from 6.8 to 28.4 pips since October 2018.
On Thursday, at 14:00 GMT the ISM Non-Manufacturing PMI is scheduled to be published. This release has caused rate adjustments on the GBP/USD from 8.8 to 22.6 pips since September 2018.
The week will end with the biggest event of the month in the US, the employment data publication, on Friday at 12:30 GMT. The release will consist of three data sets being published. The Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 14.8 to 34.1 pips on the GBP/USD charts since May 2019.
All of the historical reaction data tables to all notable data releases have been published in a separate publication. To see the publication, click on the link below.
Read More: 30.09-06.10 Event Historical Reactions
GBP/USD short-term review
On Tuesday morning the rate passed the resistance of the 55-hour simple moving average at 1.2300.The rate was next set to test the resistance of the 100-hour simple moving average near 1.2320. In general, the 100-hour SMA was expected to push the rate down, as the recent sideways trading was seen as a consolidation in the aftermath of the last week's sharp decline.
On the other hand, if the 100-hour SMA fails, the rate could recover and surge to the resistance levels at 1.2350.
Hourly Chart
On the daily candle chart, the rate had the support of the 55-day simple moving average at 1.2280.
Daily chart
Read More: Technical Analysis
Traders are long
On Tuesday, 54% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions. Traders went long on Monday.
Meanwhile, trader orders were to buy. In the 100-pip range 56% of orders were to buy and 44% were to sell. Previously, the orders were 64% to buy.
Meanwhile, trader orders were to buy. In the 100-pip range 56% of orders were to buy and 44% were to sell. Previously, the orders were 64% to buy.