Economic Calendar
There are no more notable events scheduled for this week.
GBP/USD hourly chart analysis
A move below 1.2735 might result in the rate looking for support in the combination of the 50 and 100-hour simple moving averages near 1.2720. In addition, note that the weekly S1 might act as support at 1.2711, before the pair reaches the 1.2700 mark. If the 1.2700 fails, the 1.2665/1.2675 zone could once again come into play.In the case of a potential recovery of the Pound against the US Dollar, the pair will face the previously pierced upper trend line of the channel down pattern and the 200-hour simple moving average. If these levels fail, the pair is set to approach the 1.2800/1.2820 range and the weekly simple pivot point at exactly 1.2800.
Hourly Chart
GBP/USD daily candle chart analysis
Prior Analysis: "On the daily candle chart, the rate pierced the lower trend line of the pattern and was set to reach the 100 and 200-day simple moving averages. However, the US employment release casued a surge. By late Friday, the rate was testing the resistance of the 1.2800/1.2850 range.If the pair again passes below the channel's lower trend line, there is no additional support on this chart as low as the combination of the 100 and 200-day simple moving averages below 1.2700. However, note that the 1.2700 has been acting as both as support and resistance.
On the other hand, a potential recovery is facing the 1.2800/1.2850 range. Higher above take into account the 1.2900 mark."
In general, the bearish scenario is taking place, as the resistance held and has caused a decline to the simple moving averages.
Read More: Technical Analysis
Traders become neutral
On Friday, traders were neutral, as 52% of open position volume at Dukascopy was in long positions.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 54% to sell.
On Wednesday, traders were 58% long. Meanwhile, pending orders were 51% to sell the GBP versus the USD.
On Friday, traders were neutral, as 52% of open position volume at Dukascopy was in long positions.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 54% to sell.
On Wednesday, traders were 58% long. Meanwhile, pending orders were 51% to sell the GBP versus the USD.