The GBP/USD exchange rate is squeezed by the 55- and 100-hour moving averages, located circa 1.3050 and 1.3090 respectively.
It is unlikely that the rate could decline below the weekly PP at 1.3013.
Economic Calendar
The first week of August is going to be relatively busy on the economic calendar.
On Wednesday, the US ADP Non-Farm Employment Change data is set to be issued at 12:15 GMT. Additionally, the US ISM Non-Manufacturing PMI survey results are set to be published at 14:00 GMT.
On Thursday, it is likely that the markets could be affected by the BOE Monetary Policy Report, which will be released at 11:00 GMT. Later that day, the US Unemployment Claims data is going to be published at 12:30 GMT.
On Friday, the US Employment data set release could be in the spotlight. The release is scheduled to 12:30 GMT.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate traded between the 55– and 100-hour SMAs. During Tuesday morning, the rate was squeezed by the given moving averages.From the one hand, it is likely that bulls could prevail in the market, and the currency pair could try to exceed the psychological level at 1.3150 in the short run.
On the other hand, the pair could be pushed down by the 55-hour SMA. Meanwhile, note that the rate could gain support from the weekly PP at 1.3013. If the given level holds, it is likely that the pair could consolidate.
Hourly Chart
On the daily candle chart, the rate reversed south from the psychological level at 1.3100.
In the meantime, it is likely that the rate is in the overbought area, as it is trading far above the 55-, 100- and 200-day moving averages.
Daily chart
Read More: Technical Analysis
Traders are short
On Tuesday, 68% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 58% of pending orders were set to buy the GBP/USD.
On Tuesday, 68% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 58% of pending orders were set to buy the GBP/USD.