This week, the top fundamental event will take place. The United States Federal Reserve will announce its monetary policy on Wednesday at 18:00 GMT. In addition, the event will be followed by the press conference with the Chairman of the Fed Jerome Powell.
However, up to the event markets might be surprises by large deviations from forecasts in the US ADP Non-Farm Employment Change at 12:15 GMT and the combined release of JOLTS Job Openings and ISM Manufacturing PMI at 14:00 GMT.
After the central bank events, on Friday, note that the markets will move due to the publication of the US monthly Employment data at 12:30 GMT.
GBP/USD hourly chart analysis
In general, the rate is expected to move higher and test the resistance of the weekly R1 simple pivot point at 1.2588 and the 1.2600 level. Above these levels, note the 1.2650 mark and the weekly R2 at 1.2685.Meanwhile, a potential decline would have to decline below the 50-hour simple moving average near 1.2530 and the combination of the 100-hour SMA and the 1.2500 mark. Further below, take into account the 200-hour SMA, the 1.2450 level and the weekly simple pivot point at 1.2444.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the GBP/USD is above the 200-day simple moving average and the 1.2505/1.2535 range. If the surge continues, it might face resistance in the form of the 1.2590/2.2610 range and the 50 and 100-day simple moving averages.Daily chart
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Traders are shorting
On Tuesday, traders were 53% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 56% to sell.
During last Wednesday's trading, 67% of traders were long and orders were 60% to sell.
Meanwhile, pending orders in the 100-pip range around the rate were 56% to sell.
During last Wednesday's trading, 67% of traders were long and orders were 60% to sell.