The previous low target of the GBP/USD has been reached. Moreover, the pair had reached 30 pips below the previously set target by touching the 1.2830 mark.
In regards to the future, the pair was facing a strong support cluster. If the support gets passed, the rate would decline as low as 1.2720.
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 34 pips or 0.27% . The British Pound continued trading against the US Dollar at the 1.2895 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.
Bank of England Governor Mark Carney said: "The fog of Brexit is causing short term volatility in the economic data, and more fundamentally, it is creating a series of tensions in the economy, tensions for business."
Busy week for the US and the UK
This week will be busy for macroeconomic data releases. With the exception of Tuesday, on each day there is a notable data release.Although, take into account that on Tuesday the heads of Bank of England and the US Federal Reserve will speak publicly. UK's Governor Carney will speak at 13:00 GMT and the head of the Federal Reserve Jerome Powell is set to speak at 17:45 GMT.
On Wednesday, at 09:30 GMT the UK CPI will be released. Later on at 13:30 GMT the US CPI and Core CPI will be released.
On Thursday, at 13:30 GMT the US Retail Sales and Core Retail Sales data will be published. In addition, at the same time the US Producers Price Index will be released.
The week will be closed by a UK data release. Namely, the UK Retail Sales data will be published at 09:30 GMT.
All of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more information watch the weekly Calendar Analysis stream recording.
GBP/USD short term review
The British Pound passed through the support of the 62.30% Fibonacci retracement level to depreciate against the US Dollar to the 1.2848 mark.It is expected that the currency exchange rate will break the support of the medium pattern line at the 1.2845 mark to decline towards the weekly S2 at 1.2718. Besides, the 55-hour simple moving average is trying to catch up the rate to give additional resistance to the rate.
On the other hand, the weekly S1 at 1.2831 could push the rate back to the pattern to trade sideways between the 62.30% Fibo and the bottom boundary of the medium pattern line.
Hourly Chart
On the daily, one can see that the 100-day simple moving average has begun to provide resistance to the currency exchange rate at 1.2890.
Meanwhile, the 55-day simple moving average was providing support to the pair at 1.2810. It was previously stated that it is set to provide support together with a pivot point.
That is set to occur, if the SMA moves slightly higher to the weekly S1 at the 1.2831 level. Daily chart
Meanwhile, trader set up pending orders in the 100-base point range also remained neutral. 51% of trader orders for the GBP/USD were set to sell.
The only change from Friday was that instead of having set up almost neutral buy orders traders had shifted the orders to the sell side.