- The Swiss market is 53% bullish on the pair
- Pending orders in the 100-pip range are 53% set to sell
- US PPI at 13:30 GMT is the last release of the week
The GBP/USD is declining on Friday. Moreover, it has no technical support as low as the 1.2975 mark. However, the 1.30 mark is providing psychological support to the pair.
Latest Fundamental Event
Previously, the British Pound appreciated against the US Dollar, following the UK Services PMI data release on Monday at 09:30 GMT. The GBP/USD exchange currency rate gained 17 pips or 0.13% during a minute, right after the release. The British Pound continued trading at the 1.3010 area against the US Dollar.
The Markit released UK Services PMI data that came out lower than expected of 52.2, compare to forecasted 53.4.
Chief Business Economist at IHS Markit, Chris Williamson explains :"The disappointing server sector numbers bring mounting evidence that Brexit worries are taking an increasing toll on the economy. Combined with the manufacturing and construction surveys, the October services PMI points to the economy growing at a quarterly rate of just 0.2%, setting the scene for GDP growth to weaken sharply in the fourth quarter…".
Last data set at 13:30 GMT
On Friday, at 13:30 GMT US Producers Price Index will be out. The event will be covered by Dukascopy Analytics on the webinar platform.GBP/USD short term review
The GBP/USD is heading lower on Friday. Previously, the rate confirmed the 100-hour simple moving average as resistance and began a decline. The decline of the pair was almost over by the middle of Friday's trading. The reason for that was the fact that the pair was about to meet with the lower trend line of the 200-hour SMA at 1.2970.After meeting the SMA the rate has two scenarios. It can bounce off the support and surge back up to the 1.3080 level, where the 100-hour SMA is located at. On the other hand the 200-period SMA might get passed and the 1.2900 level could be reached in that case.
Hourly Chart
The daily chart has been updated by taking into account the recent events. Namely, a large scale descending pattern has been charted.
Meanwhile, note the support of the 55 and 100-day simple moving averages. The technical levels were holding the currency exchange rate from declining below the 1.3000 mark and they should provide resistance one the rate declines.
Daily chart
Meanwhile, the pending orders in the 100-pip range are bearish. Namely, 53% of pending orders are set to sell the GBP/USD.
In general, the situation has no changed since Wednesday. It can be seen that traders have taken profits after the US elections. Moreover, traders are prepared to short the currency pair.