As it was expected, although the technical charts signaled an upcoming surge the GBP/USD has declined due to a minor Brexit announcement.
Namely, the UK Parliament denied all alternative Brexit deals. In the future the rate is still expected to follow the fundamental announcements.
The British Pound appreciated against the US Dollar, following the UK Retail Sales data released on Thursday at 09:30 GMT. The GBP/USD exchange currency rate gained 11 pips or 0.09% during a minute, right after the release. The British Pound continued trading at the 1.3050 area against the US Dollar.
The Office for National Statistics released UK Retail Sales data that came out better than expected of 0.4%, compare to forecasted negative 0.4%.
Rhian Murphy, the ONS's head of retail sales, said: "Retail sales continued to bounce back in the three months to February with strong increases in fuel sales and online shopping."
UK data will be out on Friday
This is the last week of March and due to that reason it is expected to be quiet for macroeconomic fundamental data releases. However, there are a couple of notable events worth watching.On Thursday, the US Final GDP data will be published at 12:30 GMT. The event might cause moves on various currency exchange rates from ten to twenty base points.
On Friday, there will be two releases. First will be the UK Current Account publication at 09:30 GMT. This event is expected to cause a small reaction because still most attention of fundamental traders is on the Brexit events not macroeconomic data.
That is because no historical data can be used for forecasting a currency strength in a situation where the base of the underlying economy is about to change so drastically.
Afterwards, on the same day, the top release of the week will occur. At 12:30 GMT the Canadian GDP will be published. The Canadian events are the only ones, which have constantly created exchange rate adjustments of more than 40 pips.
For more information watch the week's calendar review on YouTube by clicking the link below.
GBP/USD short term review
Due to the denial of all the proposed Brexit deals the GBP/USD has fallen below the support cluster that ranges from 1.3160 to 1.3210. However, there was no sharp drop as the market already expected the deals to be denied.From a technical perspective the rate on Thursday morning was expected to decline down to the supporting pivot point level at 1.3130. If that level would get passed, the rate would decline down to the weekly S1 at 1.3040.
Meanwhile, remember that the rate's moves ae still dictated by the events and announcements surrounding Brexit.
Hourly Chart
On the daily chart the rate has additional support. The 55-day simple moving average on Thursday was located at 1.3065.
This technical level managed to force the rate into surges two times during March. Due to that reason it is expected that it might succeed at it again.
Daily chart
Meanwhile, the pending orders are mostly bearish. In the 100-pip range near the rate 60% of pending orders were set to sell.
These orders and positions are shorting the Brexit and should have profited during the last twenty four hours.