The GBP/USD has surged to new high levels and even pierced the 1.3000 level. The surge was cause by various fundamentals.
Among them was the weakness caused by US trade tariffs, a trade dispute with the EU, Cuban retailers moving away from using the USD and lower than expected US ISM Manufacturing PMI survey results.
Economic Calendar
This week the rate might get impacted by US data.On Wednesday, there are two US events that the media will pay attention to. The ADP Non-farm Employment Change at 13:15 GMT and the US ISM Non-Manufacturing PMI at 15:00 GMT.
The ADP Employment Change has created reactions on the GBP/USD charts from 11.8 to 28.4.
In the meantime, the ISM Non-Manufacturing PMI since June 2019 has caused moves from 8.8 to 37.8 pips.
On Friday, the US Employment data sets will be published at 13:30 GMT. The event consists of three numbers – Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. Since July, moves from 21.7 to 51.3 pips have been caused by the release.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 02.12-06.12 Event Historical Reactions
GBP/USD short-term review
By the middle of Tuesday's London trading hours, the GBP/USD had pierced the 1.3000 level and touched the 1.3010 level.The 1.3010 level managed to slow down the decline of the pair. The event was followed by a decline, which was expected to reach the support of the pivot point at 1.2985.
If the rate passes the support of the pivot point, it would aim at the support of the hourly moving averages, which on Tuesday were surging upwards near 1.2930 level.
On the other hand, if the support holds, the rate might react for the resistance levels at the 1.3030 levels.
Hourly Chart
On the daily candle chart, the rate has pierced the resistance of the medium pattern, which was guiding the rate to the support of a larger channel up pattern.
It signals that the rate has ended its sideways trading, which has been occurring since the end of October.
Daily chart
Read More: Technical Analysis
Swiss short sentiment increases
Since Thursday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment changed on Tuesday, as by the middle of the day 70% of open volume was in short positions.
Meanwhile, trader orders were set to sell. In the 100-pip range, 94% of orders were sell and 6% were to buy.
The open position volume reveals that traders are selling the GBP. In addition, the orders indicate that there is a massive amount of traders expecting a reversal of the GBP/USD.
The sentiment changed on Tuesday, as by the middle of the day 70% of open volume was in short positions.
Meanwhile, trader orders were set to sell. In the 100-pip range, 94% of orders were sell and 6% were to buy.
The open position volume reveals that traders are selling the GBP. In addition, the orders indicate that there is a massive amount of traders expecting a reversal of the GBP/USD.