- The Swiss market is 63% bullish on the pair
- Pending orders in the 100-pip range are 52% set to buy
- Brexit turmoil continues, as the GBP/USD declines
After reaching a new low level on Tuesday, the GBP/USD recovered some of the losses on Wednesday. Namely, the rate had reached above the weekly S1 at 1.2750 and traded above it.
Latest Fundamental Event
Last 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
During Tuesday's trading session, the currency exchange rate was trading near the weekly S1 at 1.2750 to end the trading session at the 1.2737 mark. On Wednesday morning, the British Pound was located at the 1.2746 mark.In regards to the near-term future, most likely, the resistance of the weekly S1 at the 1.2750 mark will push the British Pound to decline towards the weekly S2 at the 1.2676 mark during the trading session on Wednesday.
However, today's UK Bank Stress Test Results could affect the rate to change its trading direction towards the 55-hour simple moving average at the 1.2789 mark.
Hourly Chart
From the daily chart's perspective the currency exchange rate has bounced off the resistance line of a large scale descending channel pattern. In the borders of the pattern it should soon reach the 1.2890 level. At that level the weekly S3 should meet the currency rate by the end of the week.
Daily chart
Moreover, buy orders dominate the trader set up pending orders. Namely, in the 100-pip range 52% of orders were set to buy on Wednesday. Although, this proportion is almost neutral.