The GBP/USD broke the channel up pattern at mid-day on Friday. The event resulted in a sharp decline to the 1.3670 level. Afterwards, a short lived recovery found resistance in the 1.3700 mark.
By the middle of Monday's European trading hours, the pair had reached the 1.3650 level.
Economic Calendar
On Monday, the US ISM Manufacturing PMI will be published at 14:00 GMT. The rate has moved from 11.5 to 21.6 pips on the release since June 2021.
On Wednesday, at 12:15 GMT the US ADP Non-Farm Employment Change could cause a minor USD move. The GBP/USD has reacted to the event with moves from 12.5 to 18.30 pips.
Later on, at 14:00 GMT the US ISM Non-Manufacturing PMI will be out. During the event, the pair has moved from 11.2 to 26.9 pips.
Wednesday will end with the US Federal Open Markets Committee Statement and Federal Funds Rate publication at 18:00 GMT. The GBP/USD has moved from 24.2 to 70.8 base points during the time of the publication.
The top event for the GBP will occur on Thursday. At 12:00 GMT, the Bank of England Official Bank Rate will be published together with the Monetary Policy Statement. The rate has moved 26.9 to 71.8 pips on the release.
On Thursday, at 12:30 GMT, the US Unemployment Claims on Thursday might cause a minor USD move. The rate has moved 11.7 to 18.3 pips, as the Claims are released.
On Friday, US statisticians will publish their monthly employment data sets at 12:30 GMT. The event has moved GBP/USD from 35.2 to 52.8 pips since June 2021.
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
In the case that the decline passes the support of the 1.3650 mark, the rate might look for support in the weekly S1 simple pivot point at 1.3628. Below the S1 the weekly S2 simple pivot point at 1.3567 could slow down a decline.Meanwhile, a recovery of the GBP/USD rate is highly likely going to encounter resistance in the 1.3700 mark and the previous week's low level at 1.3710. Above these levels, the weekly simple pivot point at 1.3729 might keep the rate down.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed below the support of the 55-day simple moving average, which kept the pair up for three consecutive trading sessions near 1.3720.In regards to the future, the pair could find support in the July and August low levels below the 1.3600 mark.
Daily chart
Read More: Technical Analysis
Traders close short positions
On Friday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 58% of volume was short. Some traders had taken profits from short positions and opened long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to buy.
The orders were 74% to sell on Friday.
On Friday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 58% of volume was short. Some traders had taken profits from short positions and opened long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to buy.
The orders were 74% to sell on Friday.