- The Swiss market is 52% bullish on the pair
- 61% of pending orders in the 100-pip range are set to SELL
- No GBP/USD affecting data until Wednesday
The GBP/USD should surge, as it found support in a junior ascending pattern. However, the surge most likely will not be long, as the rate should face the resistance of a dominant pattern.
British Pound depreciated against the US Dollar, following the UK Official Bank Rate on Thursday at 11:00 GMT. The GBP/USD exchange currency rate lost 23 pips or 0.18% during a minute, right after the release. The market did not react on the data release at all at this time.
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 11:00 GMT, in which all votes were in favor to hold the rate unchanged.
The Central Bank said: "Since the Committee's previous meeting, there have been indications, most prominently in financial markets, of greater uncertainty about future developments in the (EU) withdrawal process."
Empty Economic Calendar until Wednesday
On Wednesday at 08:30 GMT the UK CPI will be published. This data release will be covered by Dukascopy Analytics on the bank's live webinar platform. Join the platform ten minutes before the event to watch the coverage.
On the same day at 14:30 GMT the weekly US Crude Oil Inventories data will be published. As usual, it is expected to cause fluctuations in the 50 base point range on the oil price charts.
On Thursday, all attention of macroeconomic data release traders will be set on the UK Retail Sales data at 08:30 GMT.
The week's macroeconomic releases will end on Friday. On that day the Canadian CPI and Retail Sales data sets will influence the strength of the Canadian Dollar at 12:30 GMT.
GBP/USD short term review
In regards to the near future, the 55-hour and the 100-hour simple moving averages will move along with the rate giving support for the currency to surge upwards to the upper boundary of the medium ascending line at the 1.3150 mark.Besides, the rate should not ignore technical indicators during today's trading session due to an absence of Brexit fundamentals.
Hourly Chart
Previously, on the daily chart Dukascopy Analysts had drawn two possible versions for the larger, dominant pattern.
It turns out on Friday that the initially drawn pattern was the correct one, as the upper trend line of the second possible option was broken already on Thursday.
Daily chart
The Swiss trader bullish sentiment has decreased. Namely, traders of the Swiss Foreign Exchange were long in 52% of all of their open positions. Previously, 55% were long.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, are set to buy the pair in 53% of all cases. The orders have remained almost neutral during the recent past.
Combined this information indicates that the short term SWFX traders are still long in some cases, but in general they are waiting for signals that will show the future direction of the pair.
Spreads (avg, pip) / Trading volume / Volatility