GBP/USD reaches for 1.3100 level

Source: Dukascopy Bank SA
After trading just above technical support levels that are located from 1.3025 to 1.3035, the GBP/USD began to surge and was heading to the 1.3100 level.

The 1.3100 level was expected to stop the surge. Moreover, a weekly R1 pivot point was providing resistance at 1.3104.

UK Average Earnings Index

The British Pound appreciated against the US Dollar, following the UK Average Earnings Index data release on Tuesday at 09:30 GMT. The GBP/USD exchange currency rate gained 16 pips or 0.12% right after the release. The British Pound continued trading at the 1.3035 level against the Greenback.

The Office for National Statistics released the UK Average Earnings Index data, which came out better-than-expected of 3.2% compared with the forecast of 3.1%.

According to the official release: "For November 2019, average regular pay, before tax and other deductions, for employees in Great Britain was estimated at £511 per week in nominal terms. The figure in real terms (constant 2015 prices) is £472 per week, which is still £1 (0.2%) lower than the pre-economic downturn peak of £473 per week in March 2008."

Economic Calendar



The week's scheduled event historical data tables have been published. Click on the link below to read the article.

GBP/USD short-term review

As the middle of the day approached in London, the GBP/USD was surging and reaching for the 1.3100 level in one large, green candle. At that level the rate was expected to find resistance and pause its surge.

Afterwards, if the pair manages to break the resistance of the 1.3100 level and the weekly R1 pivot point at 1.3104, it would next reach for the December 17 high level of 1.3119.

On the other hand, the 1.3100 level might hold. In this case the pair would trade sideways below the 1.3100 level until the simple moving averages approach the pair from below.

Hourly Chart



On the daily candle chart, the pattern added on Tuesday has been already broken, the 55-hour SMA and the support of the 1.3000 caused a surge, which broke the upper trend line of the pattern.

Daily chart


Traders remain neutral

Since last Wednesday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.

This Wednesday, the sentiment was 53% short.

Meanwhile, trader orders were set to sell. In the 100-pip range, 62% of orders were to sell and 38% were buy orders.

The orders were 59% to sell on Tuesday.

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.