This week, there are couple of events that might cause minor reactions in the Forex market.
On Thursday, the US weekly Unemployment claims could create a minor reaction in the US Dollar. However, by large this event is being ignored by the markets, unless there is a large discrepancy from forecasts.
Also on Thursday, note that the head of the Federal Reserve Jerome Powell is set to speak at a public event at 16:00 GMT. However, it is a luncheon event at the New York Economic Club, which makes the possibility of him speaking on policy quite low.
GBP/USD short-term view
An extension of the ongoing decline might look for support in the 1.2120 level and the zone above it. Further below, Note the two October low level zones at 1.2105/1.2110 and 1.2040/1.2050. In addition, the weekly S1 could provide support at 1.2060.On the other hand, a potential surge of the Pound against the US Dollar is set to face various resistance levels. The rate is set to face the 50-hour SMA near 1.2175, the weekly simple pivot point at 1.2198 and the 1.2200 mark. Afterwards, note the combined resistance of the 100 and 200-hour simple moving averages and the 1.2218/1.2225 zone.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD has bounced off the upper trend line of the channel down and has resumed its descent. In the long term, the pair is expected to go below 1.2000.Daily chart
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Traders are almost neutral
On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 53% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 54% to sell.
On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 53% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 54% to sell.