Despite increasing trading volatility on Tuesday, the GBP/USD remained in the previous trading range.
The future forecasts for the rate were rather complicated, as Brexit, trade politics and US monetary policy were all impacting the evaluation of both currencies.
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
Yesterday, the GBP/USD exchange rate tested the resistance formed by the 100-hour moving average at 1.2858. During Tuesday morning, the rate was trading near the given resistance.It is unlikely, that some upside potential could prevail in the market, as the currency pair is pressured by the 200-hour SMA at 1.2883. The pair could decline lower than the 1.2800 level within the following trading session.
However, if the given resistance hold, the British Pound could extend gains against the US Dollar in the short run. However, it is unlikely that the rate could exceed the Fibonacci 38.20% retracement at 1.2918.
Hourly Chart
On the daily candle chart, the 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 Tuesday, 62% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Traders had been short since last week.
Meanwhile, trader orders were bearish. In the 100-pip range, 57% of orders were to sell and 43% were to buy.
Previously, the orders were neutral.
Traders had been short since last week.
Meanwhile, trader orders were bearish. In the 100-pip range, 57% of orders were to sell and 43% were to buy.
Previously, the orders were neutral.