- The Swiss market is 66% bullish on the pair
- Pending orders in the 100-pip range are set to sell in 59% of cases
- Volatility of the GBP/USD remains high
Although the GBP/USD has been ignoring most technical levels, the 200-hour SMA has been taken into account, as it has caused a decline of the pair. If the rate passes the last notable technical support level at 1.2565 it could fall as low as 1.2470.
Latest Fundamental Event
The US Bureau of Labor Statistics released US CPI data in line with expectations of 0.00%. Note, that the US Core CPI was released at the same time with the US CPI.
The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in November on a seasonally adjusted basis after rising 0.3 percent in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.2 percent before seasonal adjustment.
Week ends with US data
The US Retail Sales data sets will be out at 13:30 GMT. The event might cause a 20 pip bounce.The above mentioned data release will be covered by Dukascopy Analytics. The event can be watched either on the bank's webinar platform or on our YouTube channel.
GBP/USD short term review
By the middle of Friday's trading session the GBP/USD had continued to decline until it reached the support provided by a pivot point at the 1.2565 level. The rate bounced off this support.In the near future, it is expected that the rate will continue to decline, as a downwards trend can be observed during the last couple of days. If the rate passes the 1.2565 level, it should plummet down to 1.2470 level.
Although, take into account that Brexit talks rule over technical analysis and any announcement can cause a sudden surge upwards or be the initiator for a decline down to the 1.2470 mark.
Hourly Chart
The descending pattern of the daily candle chart has not been affected during the recent announcements. Actually, the drop of the GBP/USD was consistent with the pattern, as it represented a bounce off from the upper trend line of the pattern.
In accordance with the pattern, the currency exchange rate is set to continue to decline into the first quarter of 2019.
Daily chart
Meanwhile, trader set up pending orders in the 100-base point range were mostly set to sell the pair. Namely, 56% of trader pending orders were set to sell the GBP/USD.