The rate surged and passed resistance levels on Wednesday, as the US ADP payrolls caused a decline of the USD. The surge of the GBP/USD was stopped by the 1.3800 level. A follow up decline eventually found support in the 55-hour simple moving average near 1.3765.
Economic Calendar
The top day for fundamental event watchers will be Friday. On Friday, at 12:30 GMT the US will release the country's monthly employment data. Later on, at 14:00 GMT, the US ISM Services Purchasing Managers Index is set to be out.
Most impact is expected from the US employment data release. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD short-term review
In the case that the 55-hour simple moving average pushes the rate up, the GBP/USD would most likely once again test the 1.3800 level. If a potential fourth test of the 1.3800 level manages to break its resistance, the pair could reach for the weekly R1 simple pivot point at 1.3826.However, a failure of the 55-hour SMA to push the rate up, might result in a decline to the support of the 100-hour SMA near the 1.3760 level. Below the SMA, the lower trend line of a channel up pattern would provide support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has approached and is testing the resistance of the 200-day simple moving average, which is located at the 1.3800 level.Meanwhile, the rate was being approached by the additional technical resistance of the 55-day simple moving average at 1.3820.
Daily chart
Read More: Technical Analysis
Traders are neutral
Since Tuesday, traders were neutral, as 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to sell.
Since Tuesday, traders were neutral, as 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to sell.