The GBP/USD continues to trade in limbo. Namely, it is bouncing around in the range between 1.3080 and 1.3130 since Friday.
Dukascopy Analytics suggest to look for certain break outs that could signal the future direction of the pair.
The British Pound appreciated against the US Dollar, following the UK GDP data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate gained 7 pips or 0.05% during a minute, right after the release. The British Pound continued trading at the 1.3065 area against the US Dollar.
Commenting on today's GDP figures, Head of GDP Rob Kent-Smith said: "GDP growth remained modest in the latest three months. Services again drove the economy, with a continued strong performance in IT. Manufacturing also continued to recover after weakness at the end of last year with the often-erratic pharmaceutical industry, chemicals and alcohol performing well in recent months."
UK data starts on Tuesday morning
This week has notable data releases that will both cause significant moves in various currency pairs and be covered by Dukascopy Analytics.Data releases will start on Tuesday. On that day the UK Average Earnings Index will be published at 08:30 GMT.
On Wednesday, the UK Consumer Price Index will be released at 08:30 GMT. Afterwards, at 12:30 the Canadian CPI and Trade Balance will be released. This is expected to cause the biggest impact during this week.
The data flow will end on Thursday. The European Manufacturing PMIs will be released at 07:15 GMT and 07:30 GMT. Dukascopy Analytics will cover the 07:30 GMT, as at that time the German PMI will be published. The German data causes the biggest reaction on EUR pairs.
An hour later, at 08:30 GMT, the UK Retail Sales will be published.
Last but not least, the Canadian and US Retail Sales will be published at 12:30 GMT. Both data sets combined could cause a move on the USD/CAD of up to 30 pips.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
GBP/USD short term review
On Tuesday, the GBP/USD was trading between the 1.3080 and 1.3100 levels. However, there was a signal of a decline.Namely, the rate had pierced the support of the 1.3080 level. It indicated that a decline is set to occur in the near term future.
On the other hand, the rate could reach above the 1.3100 and once more surge up to the 1.3130 level.
Hourly Chart
On the daily chart take into account that the 55-day simple moving average is influencing the currency exchange rate at 1.3095.
Daily chart
Meanwhile, the pending orders in the 100-pip range from the rate became balanced on Tuesday.
In general, both sentiment numbers show that the short to medium term traders are neutral on the pair.