- The Swiss market is 54% bullish
- 64% of pending orders in the 100-pip range are set to BUY
- UK Services PMI on Wednesday morning
The target that was set on last Thursday, was passed on Tuesday. Namely, the 1.30 mark was passed by the GBP/USD with ease, as the pair bounced off the resistance of the 55-hour simple moving average.
The British pound appreciated against the US Dollar, following the UK Manufacturing PMI data release on Monday at 08:30 GMT. The GBP/USD exchange currency rate gained 12 pips or 0.09% during a minute, right after the release. In the next minutes the rate was trading at the 1.3053 area.
The Markit released the UK Manufacturing PMI data that came out better-than-expected of 53.8, compare to forecasted 52.6.
Rob Dobson of Markit commented in the release, "September saw a mild improvement in the performance of the UK manufacturing sector. Domestic market demand strengthened, while increased orders from North America and Europe helped new export business stage a modest recovery from August's contraction. Business confidence also rose to a three month high."
UK data early on Wednesday
Most macro release traders will be paying attention to the UK Services PMI data release on Wednesday. The data release will occur at 08:30 GMT on Wednesday, and it will also be covered on the bank's live webinar platform.
Meanwhile, there will be notable data releases on Wednesday and Friday in the US that will impact the strength of the US Dollar and with it all of the currency pairs where it is involved.
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change will be published. On the same day the ISM Non-Manufacturing PMI will be released at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics on the bank's live webinar platform.
In addition, all traders should note that on Friday at 12:30 GMT the US employment data sets like the Employment Change and Average Hourly Earnings will be published. By some financial media this event is seen as the most important of them all.
GBP/USD short term review
In the near-term future, most likely, the rate will move downwards to the weekly S1 at the 1.2948 mark during the trading session. The 55-hour simple moving average will try to catch up the rate to give additional resistance to break the weekly S1.Moreover, the UK Construction PMI data release at 8:30 GMT on Tuesday did not help the rate to change its direction to trade upwards. The release was flat and did not affect the market much to keep the rare to go downwards to the weekly S1.
Hourly Chart
The freshest update to the situation on the daily chart is that the 55-day simple moving average failed to provide support on Tuesday.
Meanwhile, the long term ascending pattern remains broken and no other medium term pattern has been spotted in the aftermath of the US Federal Funds Rate hike.
Daily chart
On Tuesday, 54% of trader open positions were long. During the end of previous week traders had shifted from being short to neutral.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, were set to sell in 51% of all cases.
Swiss traders have opened long positions in expectations of a reversal of the recent decline.