This week, the markets will watch the US Employment data release. It is scheduled for Friday 12:30 GMT. The data release moves all of the financial markets, as it causes a move in the US Dollar.
US Employment data release consists of the US Average Hourly Earnings change, Non-Farm Payrolls and Unemployment rate.
GBP/USD hourly chart analysis
A move above the 1.2800 level and the weekly R1 at it could result in the rate eventually reaching the upper trend line of the broad channel up pattern and the 1.2900 mark. However, note the weekly R2 simple pivot point at 1.2860.On the other hand, a decline of the Pound against the US Dollar would first look for support in the 1.2760 level. Afterwards, the combination of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point could act as support near 1.2740. Further below, the 1.2700 level would once again act as support.
Hourly Chart
GBP/USD daily candle chart analysis
The surge has reached the resistance of a long ago marked resistance zone. We investigated the range and found that certain levels act as resistance. Resistance is provided by the 1.2800, 1.2830, 1.2850 and 1.2900 levels. At these levels major reversals have happened that have started moves that lasted from a month up to a whole quarter.
The GBP/USD could be at a major turning point. Due to this reason watch the ascending channel closely for potential breaking of it and the establishment of a new pattern.
Read More: Technical Analysis
Traders are shorting
On Monday, traders were 69% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 54% to sell.
Meanwhile, pending orders in the 100-pip range around the rate were 54% to sell.