- The Swiss market is 58% bullish on the pair
- 63% of pending orders in the 100-pip range are set to sell
- US GDP at 12:30 will influence the currency pair
After breaking various patterns on Tuesday, on Wednesday the GBP/USD pair retreated back down. Namely, after almost reaching the 1.2940 level the rate had retreated down to 1.2850 on Wednesday morning.
The Greenback weakened against the British Pound, following the United Kingdom Retail Sales release. 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."
US GDP release cover starts at 12:20 GMT
It is the last week of the month, due to that reason there are almost no notable events scheduled for the most part of the week, which might cause large fluctuations in the currency markets.
On Wednesday, the US Preliminary GDP will be released at 12:30 GMT. The data, in theory, should provide a large reaction in the financial markets. Live event cover on the Dukascopy Webinar platform by Dukascopy Analytics will start at 12:20 GMT.
In addition, the weekly US Crude Oil Inventories data release will be published at 14:30 GMT, which has given bounces of at least 0.5 USD or 50 base points throughout the summer. Although, note that two times the data release disappointed macroeconomic release traders.
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 on Thursday. This data set is set to give the largest reaction from all of the releases, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
GBP/USD returns to pattern
The GBP/USD broke the senior descending pattern during Tuesday's trading session. However, the resulting surge was stopped by the monthly pivot point at 1.2940, which made the rate to go back into the senior ascending channel.On Wednesday morning the rate was at 1.2880 testing the upper line of the senior channel, but the stiff resistance levels did not allow the rate to surge upwards that fast.
The 200– hour SMA might pass the weekly pivot point at 1.2840 level, which may push the rate higher and break the channel one more time.
Hourly Chart
On the daily chart one can notice that the currency exchange rate has been recently bouncing between pivot point levels, as after the breaking of a dominant pattern the rate is without long term guidance.
A review of the larger scale will be conducted when there are new reference points observable.
Daily chart
The Swiss trader sentiment remains largely bullish. Namely, traders of the Swiss Foreign Exchange were long in 58% of all of their open positions.
However, additional long positions are unlikely going to be open. Retail traders of the Swiss Foreign Exchange have set up 63% of all of their pending trade orders to sell. Previously, only 55% were set to sell.
Meanwhile, OANDA traders remain largely bullish, as 64% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 62% long on the GBP/USD pair.
Spreads (avg, pip) / Trading volume / Volatility