- The Swiss market is 59% bullish on the pair
- 54% of pending orders in the 100-pip range are set to BUY
- Construction PMI on Tuesday in focus
GBP/USD began the week with a decline, which is set to continue. Namely, the announcement of the UK Manufacturing PMI forced the currency exchange rate into a decline, which passed notable support levels and aimed the rate at the weekly pivot point at 1.2850.
The British Pound weakened against the US Dollar, following the United Kingdom Manufacturing PMI release on Monday at 08:30 GMT. The GBP/USD exchange currency rate lost 23 pips or 0.18% at the time of the release. The British Pound kept going downwards after the data release to continue trading at the 1.28 area.
The Markit released Manufacturing PMI data came lower-than-expected. Namely, it was 52.8, compared with the forecast of 53.9.
The PMI report said: "August saw further signs of slowdown in the UK manufacturing sector. Rates of expansion in output and new orders eased following the first contraction in new export business for over two years. The subdued performance of the sector also transmitted itself to the labor market, with the pace of manufacturing job creation slumping to near-stagnation".
Month begins with PMIs
Throughout the week the GBP/USD rate will bounce around many times due to macroeconomic data releases. Due to that reason the events will be laid out step by step, as they are approach.
On Tuesday watch out for the UK Construction PMI at 08:30 GMT, which will cause a bounce of around ten base points on the GBP/USD. Afterwards, a minor reaction could be caused by the publication of the US ISM Manufacturing PMI at 14:00 GMT.
Both data releases will be covered by Dukascopy Analytics. Click on the notification on the JForex platform ten minutes before the release to join the live webinar.
GBP/USD breaks junior support
The British pound was testing the monthly PP at the 1.2924 level during the Monday's morning hours. The currency exchange rate broke the junior ascending line and broke through the Fibonacci 61.80% retracement level facing downwards after the fundamental date release at 8:30 GMT.The rate might go to the weekly S1 at the 1.2848 mark which is supported by the previous senior descending pattern's upper trend line that you can see on the chart.
Hourly Chart
The 55-day simple moving average can be observed on the Daily chart as the one, who pushed the rate lower on Thursday. The Monday's surge was only a continuation of the decline, which was caused by the SMA.
Meanwhile, a large scale speculative pattern has been added to the chart. If the rate resumes its surge in the future on the chart and aims for the upper trend line of the channel in the same angle, as the recent surge, the rate could reach the 1.3300 level by October.
Daily chart
The Swiss trader sentiment remains largely bullish. Namely, traders of the Swiss Foreign Exchange were long in 59% of all of their open positions.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, are set to buy the pair in 51% of all cases. This indicates that the retail traders are undecided in regards to the pair's short term future.
Meanwhile, OANDA traders remain largely bullish, as 64% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 54% long on the GBP/USD pair.
Spreads (avg, pip) / Trading volume / Volatility