On Monday, the GBP/USD was declining. It faced no technical support as low as the 1.3020 mark.
Moreover, the pair was set to be pushed lower the three simple moving averages that are used in technical analysis by Dukascopy Analytics.
The British Pound appreciated against the US Dollar, following the UK Average Earnings Index and Unemployment Rate release on Tuesday at 09:30 GMT. The GBP/USD exchange currency rate gained 7 pips or 0.05% during a minute, right after the release. The British Pound continued trading at the 1.2910 area against the US Dollar.
The Office for National Statistics released UK Average Earnings Index data that came out better-than-expected of 3.4%, compared to the forecasted 3.3%. Note, that the UK Unemployment Rate was released at the same time with the UK Average Earnings Index.
The Office for National Statistics comments: "Latest estimates show that average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 3.3% excluding bonuses, and by 3.4% including bonuses, compared with a year earlier".
Bank of England on Thursday
There are various minor data releases scheduled for this week, which are unlikely going to influence the financial markets. However, there is one event that is set to take all attention and cause a reaction.The major event will be the Bank of England rate announcement on Thursday. The rate announcement and the results of the central bank's monetary policy vote will be published at 12:00 GMT.
Another notable event during this week will be the Canadian Employment data release on Friday at 13:30 GMT.
Both of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
GBP/USD short term review
During Friday's trading session, the currency exchange rate was retraced by the 55-hour simple moving average to the 1.3060 level. On Monday morning, the British Pound kept depreciating against the US Dollar to the 1.3053 mark.Most likely, the currency exchange rate will be trading downwards to the bottom boundary of the medium pattern line at the 1.3030 mark.
Besides, the simple moving averages at the 1.3100 mark retrace the rate to give an additional push for the British Pound to depreciate against the US Dollar to the 1.3020 level.
Hourly Chart
On the daily the rate is finding support in the 200-day simple moving average, which is has been stopping the currency exchange rate from plummeting throughout the week.
Due to that reason it can be expected that the rate will decline rather slowly instead of suddenly plummeting.
In regards to the larger and longer term scale, wait for the next Brexit new, which are most likely going to cause another big and sharp move.
Daily chart
Such numbers are very rare, as usually near the 60% level a short term reversal occurs.
Most likely the short sentiment is that big due to the technical and fundamental analysis both indicating that a decline should occur.
Meanwhile, trader set up pending orders in the 100-base point range were set to sell even more. In general, 55% of trader orders for the GBP/USD were set to sell.
In general, traders are already massively short, and sellers also dominate the pending orders.