- The Swiss market is 67% bullish on the pair
- Pending orders in the 100-pip range are 52% set to sell
- No more UK releases this week
The GBP/USD pair retreated down below the 1.27 mark on Wednesday morning. Although after reaching the low level, the currency exchange rate regained strength and surge back up to resistance levels at 1.2740.
Latest Fundamental Event
The British Pound depreciated against the US Dollar, following the UK Construction PMI data release on Tuesday at 09:30 GMT. The GBP/USD exchange currency rate lost 4 pips or 0.03% during a minute, right after the release. The British Pound continued trading at the 1.2810 area against the US Dollar.
The Markit released UK Construction PMI data that came out better than expected of 53.4, compare to forecasted 52.5.
Tim Moore, an economist at IHS Markit, said, "Higher levels of new work were recorded for the sixth month running in November, which resulted in a robust and accelerated rise in staffing numbers. The latest upturn in employment was the fastest for almost three years. A number of construction firms noted that greater demand for staff had led to upward pressure on salaries in November."
No more UK data
Note that data releases, which were previously scheduled to occur in the US on Wednesday have been moved to Thursday. The reason is the announced public holiday due to the funeral of ex-President Bush.Meanwhile, at 15:00 GMT the Bank of Canada will make an 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.
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 23:45 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 Tuesday's trading session, the currency exchange rate depreciated by 1.41% or 181 pips due to a high volatility created by the Brexit uncertainty. During Wednesday's morning hours, the British Pound was resisted by the 55-hour simple moving average to trade at the 1.2740 mark.In regards to the near-term future, most likely, the currency exchange rate will trade downside due to the resistance of the technical indicators which might resist the currency rate to trade near the weekly S1 at the 1.2707 mark.
On the other hand, the British Pound could appreciate against the US Dollar during today's UK Services PMI data release at 9:30 AM to trade at the 1.2800 level.
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, trader set up pending orders in the 100-base point range were no longer set to buy, as 51% of all orders in that range were set to sell on Wednesday.