- The Swiss market is 61% bullish on the pair
- Pending orders in the 100-pip range are 53% set to sell
- Watch Brexit talks and announcements
The GBP/USD is dictated by various announcements and news about the Brexit deal. Technical levels have only minor impact on the currency exchange levels. However, they can provide additional assistance to Fundamental event traders.
Latest Fundamental Event
On Wednesday, the Census Bureau released US Core Durable Goods Orders data that came out lower than expected of 0.1 compared with forecasted 0.4%. Moreover, the US Durable Goods Orders data came out together with the US Core Durable Goods Orders with the data lower-than-expected of negative 4.4% compared with the forecasted negative 2.2%.
"New orders for manufactured durable goods in October decreased $11.5 billion or 4.4 percent to $248.5 billion", the U.S. Census Bureau announced today.
No UK releases this week
This week is the last one of the month. That means that it is bound to be empty in regards to macroeconomic data releases.First notable data release will occur this week on Wednesday. The US Preliminary GDP data will be published at 13:30 GMT. This data release is considered to be the most important among macroeconomic statistics. Although, it causes an increase of volatility around 10 to 20 base points.
On Wednesday, at 15:30 GMT the weekly US Crude Oil Inventories will be published and cause a bounce in oil prices.
On Thursday, the only notable macroeconomic scheduled event, but not a data release, will be the FOMC Meeting Minutes release at 19:00 GMT.
Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.
GBP/USD short term review
On Monday morning the GBP/USD pair surged to a technical resistance cluster at 1.2840 level. At that level the combination of the 55 and 200-hour simple moving averages was located close by. In addition, these resistance levels were strengthened by the weekly pivot point level, which was located exactly at 1.2840.If the pair breaks these technical resistance levels, it will be expected to surge up to the 1.2870 level. At that level it would meet with the resistance of the 62.20% Fibonacci retracement level and the upper trend line of a long term channel down pattern.
On the other hand, the rate might bounce off the resistance and retreat first to the 100-hour SMA at 1.2820 and afterwards to the lower trend line of a medium term pattern near 1.2800.
Hourly Chart
From the daily chart's perspective, the GBP/USD is testing the upper trend line of a channel down pattern.
Daily chart
Trader set up pending orders in the 100-pip range remain set to sell, as 54% of orders were to sell on Friday.