The GBP/USD currency exchange rate passed the support of the 1.3800 level on Thursday. However, at the 1.3765 level the rate stopped its decline without reaching the support of the weekly S1 simple pivot point. Moreover, the 1.3765 has not been acting as support during September.
On Friday, the currency exchange rate had recovered and failed at an attempt to pass the resistance cluster at 1.3815/1.3825. The resistance cluster consisted of the 55, 100 and 200-hour simple moving average and the weekly simple pivot.
Economic Calendar
On Wednesday, the top event of all macroeconomic events will occur. The US Federal Reserve Federal Open Market Committee is going to publish their Economic Projections, Statement and the Federal Funds Rate.
On Thursday, Markit Institute will publish their Purchasing Managers Indexes. The indexes are a result of survey of manufacturing and services sector managers about their outlook on their respective fields.
At 08:30 GMT on Wednesday, the UK Markit Purchasing Managers Indices for the Manufacturing and Services sector will be published. The data has caused GBP/USD volatility from 11.4 to 20.8 base points.
On Wednesday, at 11:00 GMT, the Bank of England will release to the public their Monetary Policy Summary, Official Bank Rate and Asset Purchase Facility numbers. Since February 2021, this event has caused GBP/USD moves from 28.0 to 71.8 pips.
Also on Wednesday, at 12:30 GMT, the weekly US Unemployment Claims could cause minor increases of volatility. However, for example, the range for the EUR/USD moves during the release has been from 5.4 to 11.1 base points. On average, the EUR/USD moves less than 10 points on its own, during no event environment.
The week's notable events will end with the US Markit PMI release. Namely, the US Flash Manufacturing and Services PMIs at 13:45 GMT are highly likely to cause USD moves.
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 currency pair passes the resistance cluster at 1.3815/1.3825, the rate could surge to the September 15 and 16 high level at 1.3850. A passing of the 1.3850 would most likely result in a test of the resistance of the weekly R1 simple pivot point at 1.3910.Meanwhile, a decline could once again find support at 1.3765. Below the 1.3765 level, the weekly S1 simple pivot point and the 1.3750 level might stop a GBP drop against the USD.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate trades in limbo around the 55 and 200-day simple moving averages near the 1.3810/1.3830 zone.Meanwhile, the 100-day SMA remains near the 1.3920 level. On Tuesday, it acted as resistance to the surge that was caused by the US CPI. The resistance was enough to beat the rate back down to trade near the 55 and 200-day SMAs.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Wednesday, traders were short, as 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 69% to buy.
Since Wednesday, traders were short, as 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 69% to buy.