In the near term future the rate could either trade sideways between the mentioned levels or make a move up or down.
Economic Calendar
On Thursday, the US weekly Unemployment Claims at 12:30 GMT could cause a minor USD move. The rate has moved from 12.3 to 45.8 pips on the release since May 27.
Later on at 14:00 GMT, the ISM Manufacturing PMI is likely going to impact the value of the US Dollar. This event has caused 13.1 to 21.6 pips during the releases since February 1.
On Friday, at 12:30 GMT, all USD traded assets and currency pairs are bound to move due to the monthly US employment data. The data release will consist of US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The GBP/USD has moved 22.0 to 76.4 pips on the release since February 2021.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
If the GBP/USD surges, it would have to face the resistance of the 1.3840 level and the 55-hour simple moving average. In the case of these resistance levels failing, the pair would aim at the combined resistance of the 100-hour simple moving average, the 1.3800 level and the upper trend line of the channel down pattern.On the other hand, a potential decline would find support in the 1.3800 mark, the June low levels in the 1.3787/1.3795 zone and the weekly S1 simple pivot point at 1.3782.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, note that the 1.3800 level stopped the June decline. It could provide more support in the future.If the support holds, the rate could return to the 55 and 100-day simple moving averages at 1.4017 and 1.3950 and the 1.4000 level. On the other hand, a decline below the 1.3800 mark might result in a decline to the support of the March and April low levels and the 200-day simple moving averages.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Wednesday, traders were short, as 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 52% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to buy.
On Wednesday, traders were short, as 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 52% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to buy.