At the end of last week, the GBP/USD traded with high volatility, as it dropped below 1.2860 and returned to the 1.2910 level.
This week, the rate began by trading above the support of the monthly simple pivot point at 1.2898 and below the resistance of the 55-hour SMA.
Economic Calendar
US Elections on Tuesday are bound to take away all attention from the macroeconomic data releases. However, there are things to note.
On Monday, the US ISM Manufacturing PMI could cause a notable move at 15:00 GMT. This event has caused GBP/USD moves from 11.1 to 29.5 pips.
On the day after the US Election, on Wednesday, the US ISM Non-Manufacturing PMI will be published at 15:00 GMT.
At mid-day on Thursday the Bank of England is set to make a rate announcement. Most likely the bank would reach to the impact of the US election to the GBP/USD currency exchange rate and the recent rise in coronavirus cases.
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT. Throughout October, the event has caused GBP/USD moves from 9.6 to 22.3.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
The currency exchange rate has moved from 18.5 to 43.0 pips on the announcement since June.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
From a theoretical perspective, it is likely that the currency pair could continue to depreciate within the predetermined channel in the short term. The pair could decline to the monthly S1 at 1.2817.Meanwhile, the exchange rate could gain support from the weekly S1 at 1.2863 and breach the given trend north. In this case the rate could target the 200-hour SMA near 1.3020.
Hourly Chart
On the daily candle chart, the rate is finding support in the 100-day simple moving average at the 1.2880 level. However, on Monday, the GBP/USD was piercing this support level.
In the meantime, note that the 55-day simple moving average was providing resistance at 1.3010.
Daily chart
Read More: Technical Analysis
Traders long
On Monday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 71% to buy the GBP/USD pair.
On Monday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 71% to buy the GBP/USD pair.