- The Swiss market is 55% bullish on the pair
- 58% of pending orders in the 100-pip range are set to SELL
- Bank of England and US CPI
The GBP/USD is waiting for the Bank of England announcement at 11:00 GMT. From a technical perspective the rate had ranges of almost hundred pips to both sides before the announcements. Meanwhile, the markets did not expect the bank to change their interest rate, as they hiked last month.
The British Pound appreciated against the US Dollar, following UK Average Earnings Index release on Tuesday at 08:30 GMT. The GBP/USD exchange currency rate gained 17 pips or 0.13% during a minute, right after the release.
The Office for National Statistics released the Average Earnings Index 3m/y better-than-expected of 2.6% compared with forecasted 2.4 %. The Index shows the change in the price businesses and the government pay for labour, including bonuses.
David Freeman, the ONS head of labour market statistics said: "With the number of people in work little changed, employment growth has weakened. However, the labour market remains robust, with the number of people working still at historically high levels, unemployment down on the year and a record number of vacancies. Meanwhile, earnings have grown faster than prices for several months, especially looking at pay excluding bonuses."
Bank of England at 11:00 and US CPI at 12:30
On Thursday, the main day of the month for GBP/USD has come. The Bank of England will announce its Official Bank Rate at 11:00 GMT. The event will be covered on the bank's webinar platform at 10:50 GMT.
In addition, the US CPI at 12:30 GMT is set to influence the strength of the US Dollar. The event will also be covered. The cover webinar will begin ten minutes before the release.
GBP/USD short term review
In regards to the near future, most likely the rate will move upwards towards the weekly R2 at the 1.3155 mark. The 55-hour SMA could also support the August high to push the rate upwards, but the British pound should be stopped by the upper boundary of the medium ascending line to retrace back into the pattern during Thursday's trading session.However, watch out for fundamental Brexit news, which could break most technical indicators and can ignore all the rules to push the rate to go in any direction!
Hourly Chart
On the daily chart one can clearly observe that the recent surge is a part of an ascent in the previously drawn ascending pattern of the daily chart.
If its upper trend line holds its ground and forces the pair into a move to the lower trend line of the pattern, it will be assumed that it will be the one to guide the currency exchange rate to the upper trend line of a larger dominant channel down pattern.
Meanwhile, note that, if one draws the larger pattern in a slightly different way, the rate has already reached its upper trend line and bounced off of it. It is quite common that due to various drawing methods, there are actively providing resistance and support more than one pattern of the same size and direction.
Daily chart
The Swiss trader sentiment remains largely bullish. Namely, traders of the Swiss Foreign Exchange were long in 55% 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 52% of all cases. The orders have remained almost neutral during the recent past.
Meanwhile, OANDA traders remain largely bullish, as 67% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 54% long on the GBP/USD pair. The sentiments have slightly increased since Tuesday.
Spreads (avg, pip) / Trading volume / Volatility