- The Swiss market is 63% bullish
- Pending orders in the 100-pip range are 56% set to sell
- UK data and Bank of England announcements on Thursday
The GBP/USD reached and even passed the previously set target of 1.2710. Although, after touching the 1.2700 level the currency exchange rate had reached back up to the 1.2780 mark by the middle of Wednesday's trading session.
Latest Fundamental Event
On Friday, the Bureau of Economic Analysis released US Advance GDP data that came out better than expected of 3.5%, compare to forecasted 3.3%.
The Bureau of Economic Analysis noted: "The deceleration in real GDP growth in the third quarter reflected a downturn in exports and a deceleration in non-residential fixed investment. Imports increased in the third quarter after decreasing in the second. These movements were partly offset by an upturn in private inventory investment".
UK data and Bank of England on Thursday
There are a lot of data releases this week that are expected to cause an impact on the GBP/USD exchange rate.
On Thursday, at 09:30 GMT the UK Manufacturing PMI will be published and cause a bounce of almost 20 base points. Afterwards, at 12:00 GMT the Bank of England Official Bank Rate will be announced. This is the main event for the rate. Historically, it has caused fluctuations of at least 30 base points.
On Friday, The US Employment data sets, which will be published at 12:30 GMT, will impact the GPB/USD through the strength of the US Dollar.
All of these data releases will be covered by Dukascopy Analytics on the bank's webinar platform. It can also be watched on Dukascopy Webinars YouTube channel through a live stream.
GBP/USD short term review
In regards to the near-term future, most likely, the British pound will trade sideways due to support of the weekly S1 at 1.2711 and the resistance of the monthly S1 at 1.2778.The 55-hour simple moving average will try to catch up the rate during the trading session to give an additional resistance to push the rate below the weekly S1 to trade at 1.2650 level.
Hourly Chart
The narrow decline of the GBP/USD has continued, ignoring the fact that is too narrow to last this long.
Although, it is still clear that it has to end at one point and a rebound should occur, which would reveal a larger scale pattern.
Daily chart
In addition, in the 100-pip range around the currency rate trader pending orders are set to sell the pair in 56% of cases. On Tuesday, buy orders dominated the currency exchange rate.
It seems that all of the buy orders got executed or cancelled during the recent small scale surge of the GBP/USD. However, the proportion of long to short positions has not changed.