- Retail sector is 67% bullish on the pair
- 58% of pending orders in the 100-pip range are set to sell
- Calendar and Apple webinars
On Monday morning the GBP/USD rate fought with the resistance of a weekly and a monthly pivot points.
The Greenback weakened against the British Pound, following the United Kingdom Retail Sales release on Thursday at 08:30 GMT. The GBP/USD currency pair gained 20 pips, or 0.16%.
The Office for National Statistics released UK Retail Sales data that came better-than-expected at 0.7% with the forecasted of 0.2%. The actual data is good for the currency because there come more opportunities for the change in the total value of inflation-adjusted sales at the retail level.
The Office for National Statistics senior statistician, Rhian Murphy said: "Many consumers stayed away from some high street stores in July, but online sales were very strong, supported by several retailers launching promotions. Food sales remained robust as people continued to enjoy the World Cup and the sunshine."
Empty day for fundamentals
Monday's and Tuesday's economic calendars are empty. It is the third week of the month. Due to that reason it is no surprise that there are no data releases scheduled.
Meanwhile, note that the Dukascopy webinars program is still full of various programs. Namely, join the Dukascopy Analytics team for the weekly macroeconomic calendar analysis at 12:00 GMT. In addition, at 13:00 GMT there will be a stock review webinar of the Apple stock.
GBP/USD increases volatility
The GBP/USD currency exchange rate on Friday broke the resistance of the dominant medium scale pattern. The event resulted in an increase of volatility, as the rate bounced around without a clear direction.On Monday morning the volatility was gone. The rate was trading almost flat in a limbo around the new weekly PP at 1.2748 level. The pivot point was holding the currency exchange rate down, as it attempted to surge.
The rate might surge higher as soon as additional support arrives. Namely, the 55 and 100– hour simple moving averages were approaching from the downside.
Hourly Chart
Once more the daily chart shows that the supposed surges of the GBP/USD are actually just short lived pauses in the borders of a large scale descending pattern. The currency exchange rate's decline is highly likely going to find short term support in the various monthly and weekly pivot point levels.
Daily chart
The Swiss trader sentiment has not changed, as 67% of their open positions remain long.
However, additional long positions are unlikely going to be open. Retail traders of the Swiss Foreign Exchange have set up 61% of all of their pending trade orders to sell.
Meanwhile, OANDA traders remain largely bullish, as 69% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 65% long on the GBP/USD pair.
The long term forecast is still bearish, which means that the set up pending sell orders would get executed and the long positions closed.
Spreads (avg, pip) / Trading volume / Volatility