The decline of the GBP/USD continues gradually. The target remains the same – the 1.2720 level is aimed at.
Latest Fundamental Event
The British Pound traded sideways against the US Dollar, following the UK Employment data set release on Tuesday at 08:30 GMT. The GBP/USD exchange currency rate lost 6 pips or 0.05% right after the release. The British Pound continued trading at the 1.2945 level against the Greenback.
Office for National Statistics released the UK Average Earnings Index data, which came out worse-than-expected of 3.2% compared with forecast 3.4%. Note, that the UK Unemployment Rate was released at the same time.
The UK labour market maintains its stability with a record number of people in work. The unemployment fell to 3.8%, the lowest level since the end of 1974.
No more data this week
All of the notable data sets of the week have been published. You can watch all of the data covers on the Dukascopy Webinars YouTube channel.GBP/USD short-term review
The 1.2800 level has been passed, the rate continued to decline on Friday.Given that the rate is still pressured by the 55-hour moving average, located at 1.2836, it is likely, that bears could prevail in the market in the short run.
On Friday, the rate was expected to reach the 1.2720 level. At that level the weekly S3 pivot point was located at.
Hourly Chart
On the daily candle chart, the GBP/USD has reached the lower trend line of the dominant descending channel near 1.2780. The support of this pattern is slowing down the decline.
If the trend line is broken, only then a fast decline down to 1.2720 should occur.
Daily chart
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 57% of orders were set to buy.