On Friday, the GBP/USD exchange rate renewed the 2020 maximum at 1.3360.
If the given level holds, it is likely that some downside potential could prevail.
Economic Calendar
The first week of the month is upcoming. It is set to reveal monthly data sets, which are expected to cause notable currency rate adjustments.
On Tuesday, at 14:00 GMT the US ISM Manufacturing PMI is set to be published.
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move from 5.5 to 17.7 pips. Dukascopy Analytics usually ignore this event because prior to August the EUR/USD move range was 5.5 to 8.4 pips. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate breached the short-term ascending channel north and renewed the 2020 high at 1.3360. During Monday morning, the rate reversed south.From the one hand, it is likely that some downside potential could prevail in the market. Note that the currency pair could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP and S1 in the 1.3270/1.3152 area.
From the other hand, it is likely that the exchange rate could gain support at the 1.3300 level. Thus, it is likely that the rate could trade sideways in the short term.
Hourly Chart
On the daily candle chart, the pair's surge is occurring in the borders of a large scale channel up pattern.
Daily chart
Read More: Technical Analysis
Short sentiment remains intact
On Monday, 72% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP/USD pair.
Previously, the orders were 60% to sell.
On Monday, 72% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP/USD pair.
Previously, the orders were 60% to sell.