- The Swiss market is 69% bullish on the pair
- Pending orders in the 100-pip range are 55% set to buy
- Besides Brexit talks, global trade is affecting the pair
On Monday, the GBP/USD plummeted like a rock. It passed all support levels and plummeted down to almost reach the 1.2700 level. The drop was caused by unscheduled fundamentals in the form of trade announcements, which caused a jump of the USD.
Latest Fundamental Event
The US Bureau of Economic Analysis released US Prelim GDP data that came out lower than expected of 3.5 compared with forecasted 3.6%.
The Bureau of Economic Analysis noted: "Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2018, according to the "second" estimate released by the Bureau of Economic Analysis. The growth rate was unrevised from the "advance" estimate released in October. In the second quarter, real GDP increased 4.2 percent. "
UK PMI's throughout the week
It is the first week of the month. Already on Monday morning notable data was published in the UK. Namely, the UK Manufacturing PMI was published at 09:30 GMT.Next up traders will concentrate on the UK Construction PMI on Tuesday at 09:30 GMT. The data release is expected to cause a minor reaction on the GBP/USD pairs.
On Wednesday, the ECB President Draghi might impact the EUR/USD during his speech at 08:30 GMT. In addition the head of the Federal Reserve will testify at 13:15 GMT before the congress. However, these events will note be covered by Dukascopy Analytics.
At 13:15 GMT the ADP Non-Farm Employment Change is set to be published. This data release will be covered by Dukascopy Anlaytics live on YouTube and Telefision.
Before that, note the UK Services PMI release at 09:30 GMT.
That will not be all on Wednesday. At 15:00 GMT the Bank of Canada will make interest rate announcement. This event has caused the largest fluctuations in the forex markets during 2018. This will be the top event for the month for macroeconomic event traders.
Moreover, the weekly Crude Oil Inventories will be published at 15:30 GMT. This data release causes bounced in oil prices from half a dollar up to ninety cents.
GBP/USD short term review
After the sudden plummeting on Monday, the GBP/USD is expected to reach soon for the weekly S1, which is located at the 1.2700 level.Hourly Chart
On the daily chart the rather narrow descending pattern was crushed during the last wave of volatility. A new version has been drawn. However, it is better not to use it for guidance.
In general, wait for the Brexit turmoil to end. Then the technical charting of the market can be resumed.
Daily chart
Meanwhile, in the 100-pip range, on Friday, 55% of orders were set to sell. The situation was the opposite on Monday, as 55% of orders were to buy.