Economic Calendar
The second week of August lacks notable events. The only event that could cause a market reaction is the publication of the weekly US Unemployment Claims on Thursday at 12:30 GMT.
GBP/USD hourly chart analysis
A move above the resistance range is highly likely set to approach the 1.2800 mark. The 1.2800/1.2820 range is strengthened by the weekly simple pivot point and the 200-hour simple moving average.In the case of a decline, the currency pair would have to pass the support of the 1.2700 mark, before approaching the 1.2615/1.2625 range and the weekly S1 simple pivot point.
Hourly Chart
GBP/USD daily candle chart analysis
Prior Analysis: "On the daily candle chart, the rate pierced the lower trend line of the pattern and was set to reach the 100 and 200-day simple moving averages. However, the US employment release casued a surge. By late Friday, the rate was testing the resistance of the 1.2800/1.2850 range.If the pair again passes below the channel's lower trend line, there is no additional support on this chart as low as the combination of the 100 and 200-day simple moving averages below 1.2700. However, note that the 1.2700 has been acting as both as support and resistance.
On the other hand, a potential recovery is facing the 1.2800/1.2850 range. Higher above take into account the 1.2900 mark."
In general, the bearish scenario is taking place, as the resistance held and has caused a decline to the simple moving averages.
Read More: Technical Analysis
Traders remain bearish
After the US data release, traders short, as 57% of open position volume at Dukascopy was in bearish positions.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 55% to buy.
On Wednesday, traders were 58% long. Meanwhile, pending orders were 51% to sell the GBP versus the USD.
After the US data release, traders short, as 57% of open position volume at Dukascopy was in bearish positions.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 55% to buy.
On Wednesday, traders were 58% long. Meanwhile, pending orders were 51% to sell the GBP versus the USD.