Meanwhile, Dukascopy traders have been observed adding to short positions.
Economic Calendar
This week, various Federal Reserve speakers are giving speeches about monetary policy. It appears that they could make comments that create sudden moves.
In regards to macroeconomic data releases, on Wednesday, the US Federal Reserve Federal Open Market Committee Meeting Minutes, which is the name for Fed meeting protocol, will be released. The pdf file could provide more insight how the Fed decided to do nothing about the returning inflation
On Thursday, markets will be watching the European, UK and US Markit Flash Services and Manufacturing sector Purchasing Managers Indices. The PMIs are survey results of the mentioned sectors. The survey results could surprise the financial markets by revealing that a certain country is doing better or worse than thought. As a result the respective currency should either loose or gain value against other financial assets.
GBP/USD hourly chart analysis
A decline could look for support in the 50-hour SMA near 1.2680 and the 100-hour SMA near 1.2650. In addition, note the 1.2640 level, where the weekly simple pivot point is located at and the prior May high level at 1.2634. Further below, note the 200-hour SMA and the 1.2600 mark.If the 1.2700 mark holds, the rate could surge to the weekly R1 simple pivot point at 1.2771 and the upper trend line of the channel up pattern. Moreover, note the 1.2750 level that could act as resistance.
Hourly Chart
GBP/USD daily candle chart analysis
The price remains in the drawn channel up pattern. Meanwhile, it is spotted that the daily moving averages are turning to the upside and could provide support to the ongoing surge.Daily chart
Read More: Technical Analysis
Traders are shorting
On Monday, traders were 66% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bullish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 60% to sell.
Traders had previously been long and booked their profits from the surge, before the rate extended its surge to 1.2700.
Meanwhile, pending orders in the 100-pip range around the rate were 60% to sell.
Traders had previously been long and booked their profits from the surge, before the rate extended its surge to 1.2700.
Namely, since Wednesday, Dukascopy traders are waiting for a decline and have been adding to short positions.