On Tuesday morning, a new high was reached by the GBP/USD currency exchange rate, as the historical high of 1.3383 was passed and the 1.3440 level.
In the near term future, the rate was expected to test the resistance of the weekly R1 simple pivot point at 1.3456.
Economic Calendar
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. Dukascopy Analytics usually ignore this event because prior to August the EUR/USD move range was 5.5 to 8.4 pips, which is below normal volatility. 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
On Tuesday morning, the pair was set to reach for the resistance of the R1 simple pivot point at 1.3456. If this level holds, the rate should trade sideways until it is approached by the support of the 55-hour simple moving average.On the other hand, the rate could pass the pivot point without the support of the SMA. In this case, the monthly R1 simple pivot point at 1.3517 should be reached. However, note that the round price level of 1.3500 could provide resistance.
Hourly Chart
On the daily candle chart, the pair's surge is occurring in the borders of a large scale channel up pattern.
In the meantime, zoom out and move back in the chart to observe how the 1.3383 high level previously had caused declines in 2019 December and March.
Daily chart
Read More: Technical Analysis
Short sentiment remains intact
Since 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 57% to sell the GBP/USD pair.
Previously, the orders were 53% to sell.
Since 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 57% to sell the GBP/USD pair.
Previously, the orders were 53% to sell.