Meanwhile, it has been observed that Dukascopy traders were positioned short for the decline.
Economic Calendar
On Friday, watch out for the US employment data release. The release is bound to impact the financial markets through the value of the US Dollar. The publication is set to consist of the Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate.
GBP/USD short-term view
If the Pound continues to decline against the US Dollar, it is set to look for support in the 1.2580 and 1.2560 levels. These round levels have shown to be capable at acting as both resistance and support. Further below, note the weekly S2 simple pivot point at 1.2533.However, a potential recovery of the currency exchange rate is expected to face the resistance of the weekly S1 simple pivot point at 1.2619 and the 50, 100 and 200-hour simple moving averages in the 1.2615/1.2640 range. Above the moving averages note the weekly simple pivot point at 1.2676.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, a new resistance range is marked at 1.2700/1.2720. This range appears to have held and caused the most recent decline. The decline could aim for the 200-day simple moving average near 1.2525.Daily chart
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Traders remain short
Last week, after the GDP release, traders were 64% short and orders were 70% to buy. Traders were positioned for a decline, but had close by stop losses and buy orders to open long positions.
On Wednesday, Dukascopy traders were 57% short and pending orders were 82% to buy. It appears now that more short positions have been closed and more buy orders have been set up, as the pair has continued to decline.
Last week, after the GDP release, traders were 64% short and orders were 70% to buy. Traders were positioned for a decline, but had close by stop losses and buy orders to open long positions.
On Wednesday, Dukascopy traders were 57% short and pending orders were 82% to buy. It appears now that more short positions have been closed and more buy orders have been set up, as the pair has continued to decline.