The GBP/USD started the week with testing the resistance of the 1.4000 level. In the meantime, there was a cluster of resistance levels located near the 1.4020 level.
Future scenarios were depending on whether or not the 1.4000 mark and the resistance levels at 1.4020 hold or not.
Economic Calendar
On Monday, the US ISM Manufacturing PMI could cause a GBP/USD move from 12.7 to 19.6 pips.
On Wednesday, the US ADP Non-Farm Employment Change at 13:15 GMT will be on the headlines. However, by large, the market does not care, as since December 2 the rate has moved only 8.0 to 16.7 pips on the release.
On the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI could cause a move from 11.8 to 38.4 pips.
On Friday, at 13:30 GMT the US will publish its monthly employment data. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. The GBP/USD has moved from 18.5 to 29.3 pips on the publication since October.
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
On Monday, the GBP/USD currency exchange rate was testing the resistance of the 1.4000 mark. Meanwhile, a cluster of technical resistance levels was located just above the 1.4000 mark.In the case of the 1.4000 mark being passed, the pair could reach for the 55 and 200-hour SMAs and the weekly simple pivot point in the 1.4015 to 1.4025. If these levels do not provide resistance, the 100-hour SMA at 1.4067 could be tested next.
On the other hand, if the rate bounced off the 1.4000 mark, it could once again test the 1.3900 level. The 1.3900 level provided the pair with support on Friday. In the meantime, note that the zone around 1.3850 has been marked, as it has provided support in the recent past.
Hourly Chart
On the daily candle chart, the rate continues to surge in a broad channel up pattern, which has guided the rate since March 2020. On March 16, it will be the pattern's one year anniversary.
Meanwhile, note that the rate could eventually test the resistance of the 2018 high level at 1.4377.
Daily chart
Read More: Technical Analysis
Traders are short
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions. Traders were waiting for a retracement back down.
Meanwhile, in the 100-pip range around the rate the pending orders were 69% to buy the GBP/USD pair. These could be the take profits and stop losses of the short traders.
The orders were 58% to buy on Friday.
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions. Traders were waiting for a retracement back down.
Meanwhile, in the 100-pip range around the rate the pending orders were 69% to buy the GBP/USD pair. These could be the take profits and stop losses of the short traders.
The orders were 58% to buy on Friday.