Brexit news caused another spike in the GBP/USD charts. A report on the event will be published in the near term future.
Although, the move could have been caught, as the rate broke the resistance of a channel down pattern just before the surge. It signalled that a surge is set to occur.
However, by the middle of Tuesday's trading the currency exchange rate had retreated to the support levels that are located near 1.2830.
UK GDP and Manufacturing Production
The British Pound depreciated against the US Dollar, following the UK GDP data release on Monday at 09:30 GMT. The GBP/USD exchange currency rate lost 14 pips or 0.11% right after the release. The British Pound continued trading at the 1.2803 level against the Greenback after the release.
The Office for National Statistics released the UK Prelim GDP data, which came out worse-than-expected of 0.3% compared with the forecast of 0.4%. Also, note that the UK Manufacturing Production data was released at the same time.
According to the official release: "When compared with the same quarter a year ago, UK GDP increased by 1.0% in Quarter 3 2019; this is the slowest rate of quarter-on-year growth since Quarter 1 (Jan to Mar) 2010. The service and construction sectors provided positive contributions to GDP growth, while output in the production sector was flat in Quarter 3 2019. Private consumption, government consumption and net trade contributed positively to GDP growth, while gross capital formation (GCF) contributed negatively to growth in Quarter 3 2019."
Economic Calendar
This week, US and UK data is set to impact the GBP/USD currency exchange rate.On Wednesday, the UK CPI is scheduled to be released at 09:30 GMT, which has caused GBP/USD moves from 13.6 to 20.8 pips.
On the same day, at 13:30 GMT the US Consumer Price Index and Core Consumer Price Index are set to be published. The event has caused moves on the charts from 17.4 to 23.0 pips.
On Thursday, the UK Retail Sales will be published at 09:30 GMT. It has created moves from 11.5 to 15.7 base points.
The US PPI and Core PPI data sets are scheduled to be released on Thursday at 13:30 GMT. This is a minor data release, but still worth taking into account due to the possibility of it creating a move above ten pips.
Since April 2019, the event has caused moves from 9.3 to 14.4 pips.
On Friday, the US Retail Sales data sets will be out at 13:30 GMT. The release has caused moves from 10.5 to 87.4 pips. The last event was an anomaly created by more than one data set being released at the same time. Instead expect a move around 13.7 to 24.3 pips.
Meanwhile, the week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
GBP/USD short-term review
On Tuesday, the GBP/USD had retreated down to the support levels that are located from 1.2820 to 1.2835. In that range the 55 and 100-hour simple moving averages and the weekly simple pivot point are located at.If the rate passes the support levels, it would have no support as low as the 1.2760 level. However, the 1.2800 mark could provide some support.
On the other hand, if the support levels manage to hold, the rate could surge up to the 200-hour simple moving average, which at the middle of Tuesday's London trading was located at 1.2877.
Hourly Chart
On the daily candle chart, the rate is consolidating by trading sideways in the borders of a larger ascending channel pattern.
The consolidation is occurring in a low angle channel down pattern, which could guide the pair until the end of November.
Daily chart
Meanwhile, trader orders were bullish. In the 100-pip range, 73% of orders were to buy and 27% were to sell.
On Monday, the orders were 85% to buy.