At mid-day on Friday, the GBP/USD started to find support in the 1.3660 level. On Monday, the rate bounced off the support level and began a surge. The surge passed the resistance of the 55, 100 and weekly simple pivot points from 1.3675 to 1.3690.
Next target for the surge was the 200-hour simple moving average near 1.3720.
Economic Calendar
On Monday, a slight move on all USD assets could be caused by the US Durable Goods Orders and Core Durable Goods Orders release at 12:30 GMT. The GBP/USD has moved 7.9 to 17.9 pips on the announcement.
On Thursday, at the same time as the US GDP, the US weekly Unemployment Claims could also impact the USD. The GDP has caused moves from 10.9 to 17.9 pips. The Claims have moved the GBP/USD from 6.6 to 12.2 points.
On Friday, at 14:00 GMT a notable move could be created by the US ISM Manufacturing PMI results. The GBP/USD moves from 11.5 to 21.1 points on the release.
GBP/USD short-term review
In the case that the resistance of the 200-hour SMA fails to push the rate down, the pair would aim at the resistance of the 1.3750 mark and the weekly simple pivot point at 1.3759.On the other hand, if the 200-hour SMA pushes the rate down, it would look for support in the 1.3660 level, which provided support previously.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate jumped before reaching the summer low level zone that is located below the 1.3600 mark.The ongoing recovery of the GBP/USD could encounter resistance at the 1.3800 level, where the 55-day simple moving average was located at. In addition, take into account the 200-day SMA at 1.3840 and the 100-day SMA at 1.3900.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, traders were neutral, as 51% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, traders were 51% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell.
On Monday, traders were neutral, as 51% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, traders were 51% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell.