Volatility remains high on the GBP/USD charts. The main reason for it is the turmoil in the UK Parliament, as the United Kingdom lawmakers cannot agree on a common course in regards to the country's membership in the European Union.
On Friday, the Parliament was set to vote on whether to extend the Brexit deadline. Previously, the lawmakers denied an updated Brexit deal and voted against a no-deal Brexit.
The British Pound depreciated against the US Dollar, following the UK GDP data release on Tuesday at 09:30 GMT. The GBP/USD exchange currency rate lost 32 pips or 0.25% during a minute, right after the release. The British Pound continued trading at the 1.3180 area against the US Dollar.
The Office for National Statistics released UK GDP data that came out better-than-expected of 0.5% compare to forecasted 0.2%. Note, that the Manufacturing Production was released at the same time with the GDP.
Suren Thiru, The Head of Economics at the British Chambers of Commerce, said: "The data for the longer three-month period recorded an economy that was continuing to slow under the weight of uncertainty over Brexit and weakening global trading conditions."
No more data releases this week
The week's important macroeconomic data releases have ended. Join on Monday to the Economic Calendar analysis stream on the Dukascopy Analytics YouTube channel to watch what is next.In the meantime, take into account that the Brexit turmoil is still occurring in the British Parliament. That event has taken up most attention of all Forex fundamental traders.
GBP/USD short term review
During Wednesday's trading session, the British Pound surged to the 1.3300 level due to Brexit deal talks. On Thursday morning, the rate depreciated to the 1.3261 mark.In regards to the near-term future, most likely, the currency exchange rate will expect another day of high volatility on the GBP/USD chart due to another Brexit deal meeting at the UK's parliament. Besides, most likely, the rate might break through the medium pattern line to trade near 38.20% Fibo at 1.3449.
Note, it is very important to stay informed about Brexit deal news during the day!
Hourly Chart
On the daily chart the recent moves still occur in the borders of a large scale ascending channel pattern.
However, it is highly likely that the pattern will get broken, as soon as clear result of the Brexit situation is revealed.
Daily chart
Meanwhile, the pending orders had once more become neutral. In the 100-pip range 53% of orders were set to buy.
Previously, traders had set up 77% of orders to sell. The recent denial of a no-deal Brexit at the parliament caused a surge upwards, and traders cancelled these orders.