Watch for the US ISM Manufacturing PMI on Thursday at 14:00 GMT and the Friday's release of the US Unemployment data at 12:30 GMT.
GBP/USD short-term view
A decline below 1.2340 could be slowed down by the 1.2320 level, which acted as support on Friday. Further below, note the Thursday's low level range near 1.2310 and the 1.2300 mark.However, a recovery of the Pound against the US Dollar is expected to be hindered by the 100-hour simple moving average near 1.2360, the weekly simple pivot point at 1.2374 and the resistance zone at 1.2390/1.2395.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has approached the lower boundary of the 1.2300/1.2450 range and the 100-day simple moving average. These levels are expected to act as support.A recovery of the pair could face resistance in the 1.2400 mark, and the combination of the 50-day SMA and the 1.2450 level.
In the case of a move below 1.2300 and the 100-day SMA, note the support of the 1.2200 level. Below 1.2200, the 200-day SMA and the 1.2100 might stop a broader decline.
Daily chart
Read More: Technical Analysis
Traders are long
On Monday, traders were 62% bullish, as 62% 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 70% to sell the GBP/USD.
On Friday, 64% were long, but orders were 72% to sell.
On Monday, traders were 62% bullish, as 62% 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 70% to sell the GBP/USD.
On Friday, 64% were long, but orders were 72% to sell.