During Monday morning, the GBP/USD exchange rate dropped below 1.3020.
Note that the exchange rate is pressured by the 55-hour SMA. Thus, some downside potential could prevail. US ISM Non-Manufacturing PMI
Automatic Data Processing, Inc. released the US ADP Non-Farm Employment Change data, which came out better-than-expected of 202K compared with the forecast of 160K.
The data, as it had done before, did not impact the markets at all, despite on some calendars being shown as high impact. The 13:15 GMT to 13:16 GMT candle has a five pip range, and it is smaller than the rest of the candles that had no data being released.
Economic Calendar
On Tuesday, the US Consumer Price Indices might cause a minor move on the US Dollar pairs.Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
GBP/USD short-term review
During last trading session, the GBP/USD exchange rate tried to surpass the resistance level formed by the 55-hour SMA at 1.3090. During Monday morning, the rate was trading below 1.3040.Note that the currency pair is still pressured by the 55-hour SMA. Thus, it is likely that some downside potential could prevail in the market. In this case the pair could gain support of the weekly S1 at 1.2985.
On the other hand, the exchange rate could surpass the given resistance and go upwards. However, it is unlikely that the rate could exceed 1.3100 level due to the resistance formed by the 100-hour SMA, as well the weekly PP.
Hourly Chart
On the daily candle chart, the December channel down pattern can be observed.
In theory, if the upper trend line of the pattern holds, the rate should get squeezed in between the support of the 55-day simple moving average near 1.3000 and the resistance of the trend line.
Daily chart
Read More: Technical Analysis
Traders short the pair
On Monday, 54% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positons.
Meanwhile, trader orders were almost neutral. In the 100-pip range, 54% of orders were to sell and 46% were buy orders.
Meanwhile, trader orders were almost neutral. In the 100-pip range, 54% of orders were to sell and 46% were buy orders.