- The Swiss market is 54% bearish
- 54% of pending orders in the 100-pip range are set to SELL
- Federal Reserve in focus at 18:00 GMT
The GBP/USD has shown a new large scale ascending pattern. Although, even this pattern could be easily broken by the announcement of the Federal Funds rate at 18:00 GMT.
The British pound appreciated against the US Dollar, following the United Kingdom CPI data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate gained 39 pips or 0.30% during a minute, right after the release. The rate continued trading at the 1.3181 level.
The Office for National Statistics released United Kingdom CPI data that came out better-than-expected of 2.7%, compared to forecasted 2.4%. The CPI data release is considered the UK's most important inflation data because it's used as the central bank's inflation target.
Mike Hardie, the ONS' head of inflation said in a statement:"Consumers paid more for theatre shows, sea fares and new season autumn clothing last month. However, mobile phone charges, and furniture and household goods had a downward effect on inflation".
Big Wednesday has come
The most important day of the week for fundamentals will be Wednesday. The weekly US Crude Oil Inventories will be published at 14:30 GMT. The cover webinar for the release, will star as usual at 14:20 GMT.
Meanwhile, the most important data release will be the release of the US Federal Funds Rate. The Federal Reserve is expected to hike their interest rate to 2.25% from 2.00% at 18:00 GMT. The event will be also covered by Dukascopy Analytics live.
GBP/USD short term review
In the near-term future, most likely, the rate will break the monthly R1 at the 1.3185 due to support of the 100-hour SMA. The rate may be traded at 1.3200 level on Wednesday.On the other hand, the resistance of the monthly R1 at the 1.3185 mark could push the rate to trade downside near the weekly PP at the 1.3144 mark. The predictions may be broken by fundamentals.
Hourly Chart
There is a newly discovered pattern, which was drawn by using as a reference point the low level of the Friday's sudden drop.
It can be observed from the pattern that the currency rate is still expected to head higher to the upper trend line of a massive scale descending pattern.
Daily chart
The bearish sentiment of the Swiss Foreign Exchange remains almost unchanged since Friday. On Wednesday, 54% of trader open positions were short.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, are set to buy in 52% of all cases.
The sentiment remained almost neutral throughout the week. This can be explained with the expectations of the Federal Reserve's Federal Funds rate announcement.
Spreads (avg, pip) / Trading volume / Volatility