The GBP/USD recovery passed the resistance of the 55-hour SMA and the 100-hour SMA on Friday. On Monday, the rate paused the surge. After a short investigation, it was discovered that the July low level zone of 1.3575/1.3790 was providing resistance.
In the meantime, the 200-hour SMA had approached and strengthened the resistance zone. In addition, the 55 and 100-hour SMAs were heading to the 1.3500 mark.
Economic Calendar
On Tuesday, the US ISM Services PMI at 14:00 GMT could impact the value of the US Dollar and all USD currency exchange rates. The event has moved the GBP/USD from 9.3 to 26.9 base points since May 2021.
On Wednesday, the ADP Non-Farm Employment Change at 12:15 GMT might cause USD volatility. The pair has moved from 12.5 up to 18.3 pips on the release since May 2021.
On Thursday, the weekly US Unemployment Claims at 12:30 GMT might cause a minor move in the USD. The GBP/USD has moved from 6.6 to 18.3 pips on the releases that occurred in September.
On Friday, at 12:30 GMT, the US employment data sets will be out. Namely, the Average Hourly Earnings change, the Non-Farm Employment Change and the monthly Unemployment Rate are bound to impact the value of the US Dollar.
The pair has reacted to the US employment data since May 2021 with moves from 35.2 to 76.4 base points.
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
If the currency pair surges, it would have to pass the resistance of the 1.3575/1.3790 zone and the 200-hour simple moving average. Above these resistance levels, the pair could find resistance at 1.3650, 1.3700 before reaching for the weekly R1 simple pivot point at 1.3714.On the other hand, a decline of the pair would look for support in the combination of the 55 and 100-hour SMAs near 1.3500. Below the 1.3500 mark, the rate could look for support in the previous week's low levels near 1.3410/1.3415.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has recovered and is finding resistance in the July and August low level zone. Meanwhile, the 55, 100 and 200-day simple moving averages were located at 1.3765, 1.3842 and 1.3869.Daily chart
Read More: Technical Analysis
Long sentiment drops
On Friday, traders were long, as 64% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the sentiment was 58% long.
Meanwhile, on Friday, in the 100-pip range around the rate the pending orders were 55% to sell.
The orders were 60% to sell on Monday.
On Friday, traders were long, as 64% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the sentiment was 58% long.
Meanwhile, on Friday, in the 100-pip range around the rate the pending orders were 55% to sell.
The orders were 60% to sell on Monday.