- The Swiss market is 63% bullish on the pair
- Pending orders in the 100-pip range are set to sell in 51% of cases
- Complicated US data will end the week
Dukascopy Analytics will be off for the next week. Although, we leave for the week for our readers a medium term guide. Namely, a medium scale ascending pattern, which was recently discovered is most likely going to guide the GBP/USD until next year.
Latest Fundamental Event
The British Pound depreciated against the US Dollar, following the UK BOE Official Bank Rate data release on Thursday at 12:00 GMT. The GBP/USD exchange currency rate lost 13 pips or 0.10% during a minute, right after the release. The British Pound continued trading at the 1.2680 area.
The Bank of England released Bank of England Official Bank Rate data that came out in line with expectations of 0.75%. The Votes and Monetary Policy Summary together with the MPC Official Bank Rate data release came out today at 12:00 GMT, in which all votes were in favor to hold the rate unchanged.
The Bank of England says "All roads ultimately lead back to Brexit and until there's a semblance of certainty, the outlook will remain difficult for the UK. We expect interest rates will remain unchanged, with May offering the best hope of a hike. However, this is largely dependent on Britain leaving the EU with a deal in place."
Complicated data release will end the week
The week's data will end at 13:30 GMT. At that time the Canadian Retail Sales and GDP data will be published. Simultaneously the US Durable Goods data sets and Final GDP will be released.The above mentioned data release will be covered by Dukascopy Analytics. The event can be watched on our YouTube channel.
GBP/USD short term review
On Friday, the GBP/USD traded still below the 1.2700 level, which continued to provide resistance. However, the rate had retreated down to the lower trend line of a medium scale ascending pattern, which has been guiding the pair through the last couple of months.Due to that reason it is expected that throughout the next week the rate will continue its surge, as it is highly unlikely that fundamental Brexit events will take place during the Christian holiday week.
Meanwhile, note that Dukascopy Analytics will be off during the next week. No technical or fundamental analysis articles will be created by the team.
Hourly Chart
The medium pattern was broken due to the GBP/USD surging. The surge was caused by the information that the US Federal Reserve will not tighten its monetary policy in the future, as much as it was expected previously
Namely, it was announced that in 2019 the central bank intends to hike their interest rates two times not three, as it was previously planned.
In general, this indicates that the GBP/USD will surge until the next Brexit shock.
Daily chart
This long sentiment showed up this week. Due to that reason it could clearly be stated that SWFX traders were profiting with green positions.
Meanwhile, trader set up pending orders in the 100-base point range were almost neutral, as 51% of orders were set to sell.
In general, as the holidays are upcoming traders have set up their long positions in the expectations of a surge.