The GBP/USD has passed the August high level zone and reached the 1.3800 level. During Tuesday's early London trading hours, the rate had retraced back down and looked for support.
Economic Calendar
This week, the GBP/USD could be impacted by the release of the US ISM Manufacturing Purchasing Managers Index release on Wednesday at 14:00 GMT.
The top day for fundamental event watchers will be Friday. On Friday, at 12:30 GMT the US will release the country's monthly employment data. Later on, at 14:00 GMT, the US ISM Services Purchasing Managers Index is set to be out.
Most impact is expected from the US employment data release. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD short-term review
The pair could gain support from the 55 and 100-hour simple moving averages or the previously passed August high level zone. A resumed surge of the GBP/USD would have to pass the 1.3800 level before reaching the weekly R1 simple pivot point at 1.3826.Meanwhile, a potential decline of the currency exchange rate could look for support in the lower trend line of a channel up pattern just below the 1.3750 level, the weekly simple pivot point at 1.3721 and the 200-hour simple moving average at 1.3710.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has approached and is testing the resistance of the 200-day simple moving average, which is located at the 1.3800 level.Meanwhile, the rate was being approached by the additional technical resistance of the 55-day simple moving average at 1.3826.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, traders were neutral, as 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Tuesday, the long sentiment was at 51%.
Meanwhile, in the 100-pip range around the rate the pending orders were 65% to sell.
On Tuesday, the long sentiment was at 51%.
Meanwhile, in the 100-pip range around the rate the pending orders were 65% to sell.