On Wednesday, watch the UK Manufacturing and Services sector Purchasing Managers Index results. Survey results for are set to be released at 08:30 GMT.
Later on, at 13:45 GMT, the US PMIs are scheduled to be released and could impact all of financial markets.
On Friday, the top event of the week is set to take place, as the head of the Federal Reserve, Chairman Powell, is set to give a speech on monetary policy at the Jackson Hole Symposium. Last year's speech was the catalyst for the September drop of the financial markets, as the USD gained value.
GBP/USD short-term view
An extension of a retracement downwards is expected to look for support at two levels. First is the combination of the 50 and 100-hour simple moving averages near 1.2750. Further below, take into account an ascending trend line and the 200-hour simple moving average near 1.2725.However, in the case of a resumption of the GBP surge against the US Dollar, the rate would face the 1.2782/1.2792 range, the 1.2800 mark, the weekly R1 at 1.2805 and the August high level at 1.2819. Namely, the rate is facing many levels that have shown to be capable to stop a surge.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support of the 1.2800 mark and the 50-day simple moving average. The levels turned into resistance at the start of the month. A move above the resistance could aim at the 1.3000 mark.Previously, the GBP/USD reached the support zone above 1.2600 and the 100-day simple moving average. A passing below these support levels could result in the rate looking for support in the 1.2300/1.2450 range and the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders are bullish on GBP
On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 55% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to sell.
On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 55% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to sell.