- The Swiss market is 52% bearish
- Pending orders in the 100-pip range are set to sell in 54% of cases
- No more UK data this week
The GBP/USD is set to reach the 1.3040 mark. The rate will decline, as it has passed all notable levels of significance near the 1.3150 mark.
The British Pound depreciated against the US Dollar, following the UK CPI data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate lost 26 pips or 0.20% during a minute, right after the release. The British Pound continued trading at the 1.1.3142 area.
The Office for National Statistics released UK CPI data that came out lower-than-expected of 2.4% compared with forecasted 2.6%.
The ONS commented: "The largest downward contribution came from food and non-alcoholic beverages where prices fell between August and September 2018 but rose between the same two months a year ago. Other large downward contributions came from transport, recreation and culture, and clothing. Partially offsetting upward contributions came from increases to electricity and gas prices."
No more UK relative data
For the rest of the week there will be no macroeconomic data releases that might influence the GBP/USD. Although, macroeconomic data release traders are still set to be active this week.The data release with the biggest impact will be on Friday. The Canadian statisticians will publish the Canadian CPI and Core Retail Sales at 12:30 GMT.
The data release is expected to cause a sudden bounce in the USD of almost 80 base points.
GBP/USD short term review
In regards to the near-term future, most likely, the British pound will trade downwards to the monthly PP at 1.3038 mark due to the resistance of the SMAs and the weekly PP at 1.3147 mark.On the other side, the rate might surge to the weekly PP at 1.3147 mark to bounce off the technical indicator to trade at the 1.3100 level during the trading session.
Hourly Chart
The currency exchange rate has bounced off the resistance of the most dominant descending channel pattern once more. Due to that reason the descent of the currency rate is expected to occur in the upcoming months, as long as the resistance holds.
Meanwhile, the daily chart reveals additional information. Namely, the 100-day simple moving average is providing support at the 1.31 level.
Daily chart
Since Monday, trader open positions were neutral. Although, the sentiment was slightly shifted tot eh bearish side, as 52% of positions were short on Thursday.
Meanwhile, in the 100-pip range around the currency rate 58% of trader pending orders are set to sell. Previously, 55% of trader set up pending orders were to sell.
In general, the traders are still cautious about an upcoming decline, but they are prepared to short it, as the rate moves lower.