- The Swiss market is 52% bearish
- Pending orders in the 100-pip range are neutral
- Each day of the week has notable macroeconomic data releases
Main action on the GBP/USD is on the daily chart. Namely, the currency exchange rate has once more attempted to break the resistance of a dominant descending channel.
The British Pound depreciated against the US Dollar, following the UK CPI data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate lost 26 pips or 0.20% during a minute, right after the release. The British Pound continued trading at the 1.1.3142 area.
The Office for National Statistics released UK CPI data that came out lower-than-expected of 2.4% compared with forecasted 2.6%.
The ONS commented: "The largest downward contribution came from food and non-alcoholic beverages where prices fell between August and September 2018 but rose between the same two months a year ago. Other large downward contributions came from transport, recreation and culture, and clothing. Partially offsetting upward contributions came from increases to electricity and gas prices."
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 keep surging upwards to the weekly R1 at 1.3260 mark due to the support of the 55-hour SMA and the 50.00% Fibo level.However, today's UK CPI data release at 8:30 GMT may break the predictions for the currency pair to pass through the 50.00% Fibo level during the data release time.
Hourly Chart
The currency exchange rate has bounced off the resistance of the most dominant descending channel pattern once more. Due to that reason the descent of the currency rate is expected to occur in the upcoming months, as long as the resistance holds.
Meanwhile, the daily chart reveals additional information. Namely, the 100-day simple moving average is providing support at the 1.31 level.
Daily chart
Since Monday, trader open positions were neutral. Although, on Wednesday, the sentiment had slightly become bearish, as 51.80% of traders had open short positions during the morning hours.
Meanwhile, in the 100-pip range around the currency rate 55% of trader pending orders are set to sell. Previously 65% of trader set up pending orders were to sell. Before that the percentage was at 73%.
It can be observed that no longer there is the possibility that the retail sector will massively sell the pair, as pending sell orders are almost gone. Meanwhile, some have opened short positions due to the pair passing various support levels.