The GBP/USD rate reacted to the event by retracing to the support of the 1.2700 mark. Economic Calendar
At the start of 2024, notable events start on Wednesday. At 15:00 GMT, watch the Institute for Supply Management Manufacturing Purchasing Managers Index survey results and the JOLTS Job Openings number. Note that the two releases could cause a major impact, if both shows either better or worse than expected data.
On the same day, some impact could be created by the publication of the Federal Reserve Open Market Committee Meeting Minutes publication. The Meeting Minutes are a protocol of the US monetary policy maker's last meeting. It can reveal additional information on future US base interest rate policy.
On Thursday, the US ADP Non-Farm Employment Change is capable of impacting the markets. The Automatic Data Processing released number usually is a good indicator of what the US government data will show, as it occurs prior to the official publication of employment numbers. The event is scheduled for 13:15 GMT.
On Friday, the US monthly employment data sets will be published. The event is scheduled for 13:30 GMT.
They are bound to impact the financial markets via the value of the US Dollar. Namely, good data reveals that inflation might return and the Fed would have to keep rates high or even cut. This would cause a surge of the Dollar. On the other hand, bad data would weaken the USD, as the Fed can cut rates.
GBP/USD hourly chart analysis
A move of the pair below the 1.2700 level is expected to look for support in the weekly simple pivot point at 1.2656. Below the pivot point, the strong 1.2590/1.2610 is set to act as support.On the other hand, a potential resumption of the broader surge would have to break the previously failed resistance levels. The 1.2780/1.2795 range, the 1.2800 mark, the weekly R1 simple pivot point at 1.2812 and the August high at 1.2819 are set to slow down a surge.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, resistance is provided by the 1.2800/1.2850 range. This range kept the pair down in June and August. A move above it could encounter resistance in the 1.3000 mark, before the rate reaches the July high levels above 1.3100.On the other hand, it appears that the decline would look for support in the 1.2600 mark and the ascending trend line which has pushed the pair up since October.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, traders were 54% short, and pending orders in the 100 pip range around the rate were 63% to buy.
By mid-Thursday, positions were 56% short and orders were 55% to buy.
On Friday, traders were still short, as 55% of positon volume was short. Meanwhile, pending orders were 56% to buy.
By mid-Thursday, positions were 56% short and orders were 55% to buy.
On Friday, traders were still short, as 55% of positon volume was short. Meanwhile, pending orders were 56% to buy.