- The Swiss market is 66% bullish on the pair
- Pending orders in the 100-pip range are 52% set to buy
- Besides Brexit talks, global trade is affecting the pair
On Tuesday morning the GBP/USD revealed a descending pattern. Although, the rate is still highly volatile. The GBP/USD manages to bounce around more than 50 base points during a period of an hour.
Latest Fundamental Event
The British Pound appreciated against the US Dollar, following the UK Manufacturing PMI data release on Monday 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 1.2775area against the US Dollar. Besides, the data release was flat and did not affect the market during the release time.
The Markit released UK Manufacturing PMI data that came out better than expected of 53.1, compare to forecasted 51.6.
Rob Dobson, director at IHS Markit said, "While demand from the domestic market was a positive spur, in some cases as clients built up stocks in response to Brexit and other supply-chain uncertainties, manufacturers also reported a further decrease in new export business as slower global economic growth and Brexit worries took a bite out of foreign demand".
UK PMI's throughout the week
On Tuesday, traders will concentrate on the UK Construction PMI at 09:30 GMT. The data release is expected to cause a minor reaction on the GBP/USD pairs.On Wednesday, the ECB President Draghi might impact the EUR/USD during his speech at 08:30 GMT.
Afterwards, note the UK Services PMI release at 09:30 GMT. This event will be covered by Dukascopy Analytics
That will not be all on Wednesday. At 15:00 GMT the Bank of Canada will make interest rate announcement. This event has caused the largest fluctuations in the forex markets during 2018. This will be the top event for the month for macroeconomic event traders.
Meanwhile, note that there are changes in the calendar due to the funeral of George Bush senior. Namely, Wednesday's events in the US have been moved to Thursday.
At 13:15 GMT on Thursday the ADP Non-Farm Employment change will be published and covered by Dukascopy Analytics on the bank's webinar platform and YouTube channel.
Moreover, the weekly Crude Oil Inventories will be published at 16:00 GMT. This data release causes bounced in oil prices from half a dollar up to ninety cents.
The day will end with the head of the Federal Reserve testifying before the US Congress at 11:45 GMT.
Last but not least will be the Friday's monthly US and Canadian employment data release at 13:30 GMT. This event will also be covered by Dukascopy Analytics.
GBP/USD short term review
During Monday's trading session, the currency exchange rate depreciated by 0.82% to end the trading session at the 1.2719 mark. During Tuesday's morning hours, the British Pound was resisted by the 55-hour simple moving average to trade at the 1.2749 mark.In regards to the near-term future, most likely, the currency exchange rate will trade downside towards the weekly S1 at 1.2700. In addition, today's UK Construction PMI data release at 9:30 GMT could support the downtrend for the currency exchange pair during the day.
On the other side, the data release could push the rate to trade near the weekly PP at the 1.2782 mark.
Hourly Chart
On the daily chart the rather narrow descending pattern was crushed during the last wave of volatility. A new version has been drawn. However, it is better not to use it for guidance.
In general, wait for the Brexit turmoil to end. Then the technical charting of the market can be resumed.
Daily chart
Meanwhile, in the 100-pip range, on Friday, 55% of orders were set to sell. The situation was the opposite on Monday, as 55% of orders were to buy.
By the middle of Tuesday's trading the proportion had decreased down to 53%.