The Pound lost value due to the details of the monetary policy summary. Namely, one of the committee members did not vote for the 0.50% rate hike. Instead, the policymaker wanted only a 0.25% hike. It indicates that there has been discussion about easier monetary policy.
By 13:00 GMT, the currency pair had reached below the 1.2100 mark and remained highly volatile. Economic Calendar
On Wednesday, the US ISM Services PMI at 14:00 GMT might impact the pair through the value of the US Dollar.
On Thursday, the top event for the GBP will occur. Namely, the Bank of England is set to make reveal its Monetary Policy Summary and the Official Bank Rate. The central bank is expected to hike by 0.50% from 1.25% up to 1.75%.
On Friday, one of the top events of the month will take place. At 12:30 GMT, the US employment data sets are scheduled to be released. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD short-term view
In the case of the pair extending its decline, the 1.2050 mark might act as support, prior to the rate reaching the weekly S1 simple pivot point at 1.2008 and the 1.2000 mark.On the other hand, a recovery of the Pound against the US Dollar is set to face the resistance of the weekly simple pivot point at 1.2127 and the 200-hour simple moving average near 1.2140.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has been breaking one resistance after another. Namely, the upper trend line of the first half of 2022 channel down pattern was broken. On Monday, August 1, the 50-day simple moving average was breached.In regards to the near term future, take into account that the 100-day simple moving average was strengthening the 1.2400 mark's resistance.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Thursday, traders were neutral, 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 57% to sell the GBP/USD.
On Wednesday, 52% of positions were short and pending orders were 61% to sell.
On Thursday, traders were neutral, 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 57% to sell the GBP/USD.
On Wednesday, 52% of positions were short and pending orders were 61% to sell.