- The Swiss market is 62% bullish on the pair
- Pending orders in the 100-pip range are 58% set to sell
- Watch Brexit talks and announcements
On Thursday another massive increase of volatility occurred on the GBP/USD due to the Brexit talks. Namely, the rate suddenly jumped up above the 1.2900 mark and retreated back down to the 1.2800 level in the matter of a couple hours.
Latest Fundamental Event
The British Pound depreciated against the US Dollar, following the UK Retail Sales data released on Thursday at 09:30 GMT. The GBP/USD exchange currency rate lost 16 pips or 0.13% during a minute, right after the release. The British Pound continued trading at the 1.2810 area against the US Dollar.
The Office for National Statistics released UK Retail Sales data that came out lower than expected of negative 0.5%, compare to forecasted positive 0.2%.
The Office for National Statistics noted, "In the three months to October 2018, the quantity bought in retail sales increased by 0.4% when compared with the previous three months; a slowdown to growth when compared with the strong summer sales, which reached a high of 2.3% in the three months to July".
Last notable data release will come from Canada on Friday
There are no mentioning worth data releases scheduled for Thursday. However, there is still a data release to wait for this week.Note that on Friday at 13:30 GMT the Canadian CPI and Core Retail Sales data will be published.
The data release can be watched live on the Dukascopy Webinar platform and the Dukascopy Webinars YouTube channel. Join ten minutes before the event to see the cover.
GBP/USD short term review
In regards to the near-term future, Brexit talks will continue to dictate the rules, as announcements are made by all sides involved in the future of the United Kingdom.Technical traders are advised to stay out of this highly volatile pair. The action is mostly fundamental.
Hourly Chart
From the daily chart's perspective, the GBP/USD is set to reach for the 1.2685 mark where the weekly S1 is located at.
Daily chart
Pending orders in the 100-base point range are set to sell the pair, as 56% of the orders in the range are set to sell. Previously, 62% of orders were set to sell.
Although a jump occurred on Thursday, it did not trigger take profit orders. This indicates that the long traders are long on the currency exchange on a much larger scale. Meaning that they are expecting a good Brexit deal of the UK.