- The Swiss market is neutral
- Pending orders in the 100-pip range are set to sell in 66% of cases
- Each day of the week will have notable macroeconomic data releases
After the UK Employment data release the GBP/USD traded near the 1.32 level. It was expected that the currency exchange rate was most likely going to continue to surge in the upcoming trading sessions.
Previously, the US dollar strengthened against the British Pound, following the UK GDP and Manufacturing Production data release. The GBP/USD currency pair lost 8 pips, or 0.06%. The British pound kept going downwards after the data release to continue trading at the 1.3159 area.
The Office for National Statistics released Gross Domestic Product data that came lower-than-expected of 0.0% with the forecasted 0.1%. Moreover, UK Manufacturing Production data came out together with the UK GDP data release with the data lower-than-expected of negative 0.2% compared with the forecasted 0.1%.
Rob Kent-Smith, Head of GDP at the Office for National Statistics said: "The economy continued to rebound strongly after a weak spring, with retail, food and drink production and house building all performing particularly well during the hot summer months. However, long-term growth continues to lag behind its historical trend."
UK data almost each day
Macroeconomic data release traders are still set to be active this week. Data is set to be published in the United Kingdom and Canada.Namely, UK CPI will be published on Wednesday and UK's Retail Sales data will be out on Thursday. Both data releases are expected to cause a big impact on the strength of the GBP. The data releases will occur at 08:30 GMT on both days.
Meanwhile, note that the data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
GBP/USD short term review
In regards to the near-term future, the British pound will surge upwards to the weekly R1 at the 1.3260 mark due to the support of the 100-hour SMA. Most likely, the British pound will trade at the 1.3200 level on Tuesday.Moreover, none of the technical indicators may resist the rate from the surge on Tuesday.
Hourly Chart
The decline, which was previously speculated by watching the daily chart, has occurred. The rate has bounced off the 1.3250 level.
Moreover, the event has provided the opportunity to adjust properly the location of the trend line of the massive scale most dominant descending channel. Namely, the pattern's upper trend line was located at the 1.3250 level.
Daily chart
Since Monday, trader open positions were neutral.
Meanwhile, in the 100-pip range around the currency exchange rate 65% of trader set up pending orders are set to sell. Previously. 73% of orders were prepared to sell.
All in all, the situation has not changed largely, as the majority of traders wait for signals to sell.