This week, traders will be initially looking at the ISM Manufacturing Purchasing Managers Index survey results on Wednesday at 14:00 GMT. The publication is set to reveal how the US Manufacturing industry is looking at the future and with it impact the value of the US Dollar.
On Thursday, minor USD moves could occur due to the ADP Non-Farm Employment Change at 12:15 GMT and the US Unemployment Claims at 12:30 GMT. Minor moves are usually around ten to fifteen base points.
On Friday, one of the top events of the whole market will occur. Namely, the release of the US employment data at 12:30 is set to shake up the market. The release will consist of the US Unemployment Rate, Average Hourly Earnings Change and the Non-Farm Employment Change.
GBP/USD short-term review
In the near term future, the GBP/USD could be pushed through the resistance of the 1.2660 mark by the 50-hour simple moving average. A move higher is expected to encounter some resistance in the 1.2700 mark and the weekly R1 simple pivot point at 1.2706.On the other hand, a decline of the rate below the 50-hour simple moving averages and the 1.2600 level could find support in the weekly simple pivot point at 1.2588 and the 100-hour simple moving average near 1.2580. Further below, note the 1.2550 level and the approaching 200-hour SMA.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed above the resistance line of the larger scale channel down pattern, which has guided the rate's decline since early February. Moreover, on Tuesday and Wednesday the pair confirmed the previous resistance as support.Next target for the surge was the 50-day simple moving average near 1.2750. Higher above, note the March and April support zone near 1.3000. Namely, the 1.3000 mark could act as resistance.
Daily chart
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Traders go long
On Friday, traders were 52% bearish, as 52% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 58% to buy the GBP/USD.
On Monday, the open positions were 64% long and pending orders were 64% to buy.
On Friday, traders were 52% bearish, as 52% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 58% to buy the GBP/USD.
On Monday, the open positions were 64% long and pending orders were 64% to buy.