The decline of the GBP/USD reached the previously set targets, as it reached the 1.2488 level on Tuesday morning.
Moreover, the pair passed the support levels near 1.2480 and was set to reach the 1.2440 level, where it would be met by two technical support levels.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
The pair has passed the technical support levels that were located near the 1.2480 mark. Due to that reason a decline of the pair is most likely.Namely, the GBP/USD is expected to decline down to the 1.2440 level, where it would meet with two technical support levels. Namely, a lower trend line of a dominant pattern and the weekly S1.
On the other hand, on Tuesday morning it could be observed that the rate had experienced a sharp drop. Such drops are usually followed by a period of sideways trading consolidation.
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.
By the middle of Tuesday's trading 71% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were almost neutral, as 53% of orders were set to buy.
On Monday, 73% of open position volume was in long positions.
By the middle of Tuesday's trading 71% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were almost neutral, as 53% of orders were set to buy.