- The Swiss market is 58% bullish on the pair
- 55% of pending orders in the 100-pip range are set to buy
- Only Canadian data on Thursday
The 58% of all of the GBP/USD positions on SWFX were bullish on Wednesday. Most likely all of these Dukascopy traders have massive gains. The reason is the massive surge, which took place on the GBP/USD charts, which almost reached the 1.3050 mark.
The Greenback weakened against the British Pound, following the United Kingdom Retail Sales release. The GBP/USD currency pair gained 20 pips, or 0.16%.
The Office for National Statistics released UK Retail Sales data that came better-than-expected at 0.7% with the forecasted of 0.2%. The actual data is good for the currency because there come more opportunities for the change in the total value of inflation-adjusted sales at the retail level.
The Office for National Statistics senior statistician, Rhian Murphy said: "Many consumers stayed away from some high street stores in July, but online sales were very strong, supported by several retailers launching promotions. Food sales remained robust as people continued to enjoy the World Cup and the sunshine."
Canadian data at 12:30 GMT
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 on Thursday. This data set is set to give the largest reaction from all of the releases this week, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
GBP/USD reaches new high level
The British Pound experiences a significant surge upwards during the last two days of trading. The rate broke the senior descending pattern as well as the Fibonacci retracement level of 61.80% during Wednesday's trading session passing through the monthly pivot point at 1.2930.Moreover, Wednesday's trading session ended up with a new high of 1.3041, not seen since the beginning of August. On Thursday morning the rate was at 1.3030.
The 55-hour SMA tried to catch the rate to play a role of support for the currency pair. The nearest support level is the weekly R1 at 1.2950, while the nearest resistance level is the weekly R2 at 1.3047.
Hourly Chart
The daily chart shows that the jump occurred, as the rate passed the resistance of two pivot point level below the 1.2950 mark. Afterwards, without significant resistance, the rate surged until it reached the resistance of the weekly second resistance at 1.3046. The resistance was also strengthened by the 55-day simple moving average.
If the resistance levels get passed, the pair would surge up to the 1.3150 mark, where the next resistance cluster is located at.
Daily chart
The Swiss trader sentiment remains largely bullish. Namely, traders of the Swiss Foreign Exchange were long in 58% of all of their open positions.
In the meantime, Swiss traders are no longer preparing to massively sell the pair. Previously, 63% of all trader set up pending orders were set to sell the pair under certain circumstances. On Thursday, the orders were almost neutral, as 52% of trader orders were set to buy.
Meanwhile, OANDA traders remain largely bullish, as 65% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 58% long on the GBP/USD pair.
Spreads (avg, pip) / Trading volume / Volatility