This week, the rate could be impacted by the publication of the US ISM Manufacturing PMI and the JOLTS Job Openings on Tuesday at 14:00 GMT.
On Thursday, watch out for the Bank of England's expected rate hike at 5.25%. It is possible that not only the GBP pairs, but other financial instruments could adjust to the continuation of rate increases.
On Friday, at 12:30 GMT, the US employment data will impact the USD and all rates that involve it. The release will consist of the US Average Hourly Earnings change, Non-Farm Employment Change and the official Unemployment Rate.
GBP/USD short-term view
A move above the 1.2890 and 1.2900 levels could result in a surge to the weekly R1 simple pivot point at 1.2973, the recent high level at 1.2995 and the 1.3000 mark.A move below the support zone at 1.2830/1.2840 could look for support in the 1.2800 mark and the range above it. Below 1.2800, take into account the Friday's low level at 1.2764. Further below, the weekly S1 simple pivot point might stop a decline at 1.2740.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, most recently the 1.2800 mark served as support, it could be that the 1.2800/1.2850 range is capable to act as support and resistance. In the case of a broader surge, the pair could aim at the July high at 1.3150.Meanwhile, note the approaching 50 and 100-day simple moving averages. The 50-day SMA has been ignored during May and June. However, the 100-day SMA's support caused the most recent broader surge.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 53% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to buy.
Last week, after Fed rate hike, 64% of volume was in short positions and orders were 51% to sell.
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 53% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to buy.
Last week, after Fed rate hike, 64% of volume was in short positions and orders were 51% to sell.