On Thursday morning, the GBP/USD was piercing the upper trend line of the channel down pattern, which had guided the rate down since September 20.
The short-term future forecast were based on what would happen at the trend line.
US ISM Manufacturing PMI
The Institute for Supply Management released the US ISM Manufacturing PMI survey data results, which came out worse-than-expected of 47.8 compared to the forecast of 50.4.
The Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee Timothy R. Fiore commented: "Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth."
Economic Calendar
On Thursday, at 14:00 GMT the ISM Non-Manufacturing PMI is scheduled to be published. This release has caused rate adjustments on the GBP/USD from 8.8 to 22.6 pips since September 2018.The week will end with the biggest event of the month in the US, the employment data publication, on Friday at 12:30 GMT. The release will consist of three data sets being published. The Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 14.8 to 34.1 pips on the GBP/USD charts since May 2019.
All of the historical reaction data tables to all notable data releases have been published in a separate publication. To see the publication, click on the link below.
GBP/USD short-term review
On Thursday morning, the rate was piercing the trend line of the late September channel down pattern.If the trend line fails to keep the rate down, the GBP/USD should next surge to the resistance of the weekly PP and the 200-hour simple moving average near the 1.2350 mark.
On the other hand, if the rate returns back below the trend line, it would look for support in the 55 and 100-hour simple moving averages and the monthly pivot point. These support levels were scattered from 1.2280 to 1.2290.
Hourly Chart
On the daily candle chart, the rate has returned back above the 55-day SMA. Due to the rate bouncing around it, it is suggested to start ignoring this level.
Namely, it can be observed that the support of the SMA failed on October first. Afterwards, the levels resistance was ignored throughout the week.
Daily chart
Meanwhile, trader orders were neutral. In the 100-pip range 51% of orders were to sell and 49% were to buy.
Previously, the orders were 70% to buy.