- The Swiss market is 61% bullish
- Pending orders in the 100-pip range are 51% set to buy
- No data on Monday
A new low level has been reached by the GBP/USD. Namely, the currency pair touched the 1.2780 level during Friday's trading session.
Latest Fundamental Event
On Thursday, The Census Bureau released US Durable Goods Orders data that came out better than expected of 0.8 compared with forecasted negative 1.3%. Moreover, the US Core Durable Goods Orders data came out together with the US Durable Goods Orders with the data lower-than-expected of 0.1% compared with the forecasted 0.5%.
The market slightly increased volatility during the data release cover but at the same time, the market did not react on the released datasets at all. The fundamental events cancelled one another out to make the data release pure flat.
No macroeconomic data on Monday
On Monday, there are no data releases scheduled to occur that might impact the financial markets.
Meanwhile, the week's calendar will be reviewed during the weekly Poking the Economic Calendar webinar at 12:00 GMT.
GBP/USD short term review
In regards to the near-term future, most likely, the British pound will pass through the support of the monthly S1 at 1.2778 due to the resistance of the 55-hour simple moving average.On the other hand, the support of the monthly S1 at 1.2778 could support the rate to stimulate the currency exchange pair to break the resistance of the 55-hour SMA to surge towards the 62.20% Fibo on Monday.
Hourly Chart
The GBP/USD has continued to decline in a narrow pattern on the daily chart. It can be observed that this type of narrow channel is unlikely going to continue to guide the rate for long.
Instead expect the reveal of a medium scale pattern on the daily chart next week, when the decline should end and a new reference point for charting will be available.
Daily chart
In addition, in the 100-pip range around the currency rate trader pending orders are set to buy the pair in 51% of cases.
It can be observed that the pair is in the overbought zone, as there is a clear dominance of long positions. Meanwhile, the traders pending orders to buy or sell are almost neutral.
Most likely these traders expect a surge in the aftermath of the recent decline. The long positions should remain intact until the currency pair either surges or declines further.