On Monday, the GBP/USD was declining in accordance with the morning's daily short term Technical Analysis publication.
In general, the rate was expected to gradually reach the 1.2490 level.Latest Fundamental Event Report
Bureau of Labor Statistics released the US ISM Non-Farm Employment Change data , which came out better-than-expected of 244K compared with the forecast of 162K.
According to the official release: "Notable job gains occurred in professional and business services, in health care, and in transportation and warehousing."
UK GDP and minor US data
This week the data that will impact the GBP/USD will come from the UK and the US. There are FOMC Meeting Minutes incoming and a couple of minor data releases.
The UK GDP and Manufacturing Production will be released at 08:30 GMT on Wednesday. This event has caused moves from 19.8 to 38.1 pips since February.
The FOMC Meeting Minutes will come at 18:00 GMT on Wednesday. The event has caused moves on the GBP/USD from 9.2 to 22.5 pips since November 2018.
On Thursday, the US CPI and Core CPI data will be published at 12:30 GMT. The data release has caused moves from 14.8 to 26.6 pips since February.
On Friday, the US Producers Price Index will be released at 12:30 GMT. The event has caused moves from 9.0 to 35.6 pips. Although, note that the 35.6 pip move was actually caused by other announcement being made at the same time as the PPI was published.
For more information watch this week's Economic Calendar Analysis
Click Here: Economic Calendar Overview 08/07
GBP/USD short-term review
During Friday, the GBP/USD exchange rate reversed north from the 2018/2019 minimum located at 1.2488. During today's morning, the rate was trading near the 1.2540 level.It is unlikely, that the currency pair could surpass the 1.2545/1.2574 range due to the resistance cluster formed by the 55– and 100-hour SMAs, as well the monthly S1 and the weekly PP.
If the given cluster holds, it is expected, that the pair could reverse south on the nearest future to re-test the given minimum.
Also, it is unlikely, that the British Pound could exceed the 1.2600 mark against the US Dollar due to the upper boundary of the short-term descending channel.
Hourly Chart
On the daily candle chart one can observe that the rate remains in the borders of a descending channel pattern. Namely, the pair is targeting the lower channel line.
Note, that the rate is pressured by the 55-day moving average at 1.2793, thus, it is unlikely, that some upside potential could prevail.
Daily chart
Read More: Technical Analysis
Traders remain long
On Monday, 73% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 58% of orders were set to sell.
In general, traders were still long on the pair, but had close by take profits and stop losses.
On Monday, 73% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 58% of orders were set to sell.
In general, traders were still long on the pair, but had close by take profits and stop losses.