On Thursday, watch out for the Bank of England's expected rate hike at 5.25%. It is possible that not only the GBP pairs, but other financial instruments could adjust to the continuation of rate increases.
On Friday, at 12:30 GMT, the US employment data will impact the USD and all rates that involve it. The release will consist of the US Average Hourly Earnings change, Non-Farm Employment Change and the official Unemployment Rate.
GBP/USD short-term view
In the case of a decline below 1.2740, the rate is expected to look for support in two zones. There are support and resistance zones at 1.2722/1.2727 and 1.2685/1.2700.A strengthening of the Pound against the USD is expected to face resistance in the 1.2800/1.2815 range. Higher above, the 50, 100 and 200-hour simple moving averages could strengthen the 1.2830/1.2840 zone.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, most recently the 1.2800 mark served as support, it could be that the 1.2800/1.2850 range is capable to act as support and resistance. In the case of a broader surge, the pair could aim at the July high at 1.3150.Meanwhile, note the approaching 50 and 100-day simple moving averages. The 50-day SMA has been ignored during May and June. However, the 100-day SMA's support caused the most recent broader surge.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 53% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to buy.
On Tuesday, traders were 51% short and orders were 76% to buy. An execution of the orders could result in SWFX traders being bullish.
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 53% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to buy.
On Tuesday, traders were 51% short and orders were 76% to buy. An execution of the orders could result in SWFX traders being bullish.