At the middle of Monday's trading, the GBP/USD was being pushed down by the 55-hour simple moving average near the 1.2850 mark.
In general, the currency exchange rate was expected to trade sideways until the Federal Reserve Rate announcement, as Brexit deadline has been extended and with it attention was removed from it.
Economic Calendar
This week the GBP/USD is bound to be affected by US data and an expected rate cut.On Wednesday, October 30, the US ADP Non-Farm Employment Change data will be published at 12:30 GMT. The GBP/USD has moved from 12.9 to 28.4 pips on the announcement.
On the same day, the US Advance GDP will be published at 12:30 GMT. This is the top US GDP data release. It has caused moves on the GBP/USD charts from 11.5 to 36.1 pips since July 2018.
Moreover, the FOMC Statement and the Federal Funds Rate are scheduled to be published at 18:00 GMT. The announcement has caused reactions from 32.9 to 62.5 base points since January 2019.
On Friday, November 1, the US Employment data set will be on focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
This event has caused moves from 21.7 to 51.3 pips since June 2019.
Also on Friday, the ISM Manufacturing PMI survey results will be published at 14:00 GMT. The PMI release has caused reactions from 13.2 to 28.9 base points since June of this year.
For more detailed information take a look at the 28.10-01.11 Event Historical Reactions publication.
Read More: 28.10-01.11 Event Historical Reactions
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate traded sideways at 1.2820 level. During Monday morning, the rate maintained its consolidation.It is unlikely that the currency pair could trade upwards due to the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP, the monthly R2 and the Fibo 38.20% in the 1.2840/1.2920 area.
The British Pound could depreciate against the US Dollar within the following trading session. A possible downside target is the 1.2760 level.
Hourly Chart
On the daily candle chart, the recent bounce off from the 1.3000 mark has provided a reference point for pattern charting. An ascending channel pattern that represents the recovery started in August has been added to the chart.
In general, the rate can trade in any direction in the borders of the pattern. It can go down to the 200-day SMA, trade sideways near the 1.2800 mark or attempt to pass the pivot points that provide resistance above it.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Friday, 58% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Monday's London trading session, 65% of open volume was in short positions. Short sentiment had increased over the weekend.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to buy and 50% were to sell.
By the middle of Monday's London trading session, 65% of open volume was in short positions. Short sentiment had increased over the weekend.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to buy and 50% were to sell.