On Thursday, the GBP/USD traded near the 1.3100 level just as during the previous trading session.
The rate had held up despite recent Brexit developments, as the technical support levels located from 1.3060 to 1.3090 were strong enough to support the GBP against the USD.
The British Pound appreciated against the US Dollar, following the UK GDP data release on Wednesday at 08:30 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 1.3065 area against the US Dollar.
Commenting on today's GDP figures, Head of GDP Rob Kent-Smith said: "GDP growth remained modest in the latest three months. Services again drove the economy, with a continued strong performance in IT. Manufacturing also continued to recover after weakness at the end of last year with the often-erratic pharmaceutical industry, chemicals and alcohol performing well in recent months."
US PPI ends the week
On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.All events are covered by Dukascopy Analytics. The covers of events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
GBP/USD short term review
On Thursday, the GBP/USD was still located above the technical level cluster, which was located from 1.3060 to 1.3090. The recent Brexit news did not beat down the GBP.Meanwhile, Dukascopy analysts spotted an ascending pattern, which has been guiding the rate higher since Friday.
In general, it is expected that the rate will surge up tot resistance levels near 1.3120. On the other hand, bad Brexit news could propel the rate through the described support cluster. In that case the rate would decline down as low as 1.3000.
Hourly Chart
On the daily chart the rate also has dropped below technical significance levels. Due to that event the closest support levels are located at 1.3000.
At that level the lower trend line of the long term ascending channel together with the 200-day simple moving average are located at.
Although, on Tuesday it was spotted that the 200-day SMA is moving downwards to the weekly S1 at 1.2950. In addition, the 100-day SMA was approaching that level.
Daily chart
Since Monday, the total open position volume proportion at the Swiss Foreign Exchange was 51% long.
On Thursday, the sentiment was balanced. 50% were short and the other 50% were long.
Meanwhile, the pending orders in the 100-pip range from the rate were no longer bearish. Instead of the 63% sell orders on Wednesday, on Thursday 51% of orders were to sell.