- The Swiss market is 56% bullish
- Pending orders in the 100-pip range are set to buy in 52% of all cases
- UK data was released on Wednesday morning
As it was expected, the GBP/USD has surged. In addition , the currency pair gained a lot more than it was forecast, as the currency rate reached the 1.3180 mark.
The US dollar strengthened against the British Pound, following the UK GDP and Manufacturing Production data release. The GBP/USD currency pair lost 8 pips, or 0.06%. The British pound kept going downwards after the data release to continue trading at the 1.3159 area.
The Office for National Statistics released Gross Domestic Product data that came lower-than-expected of 0.0% with the forecasted 0.1%. Moreover, UK Manufacturing Production data came out together with the UK GDP data release with the data lower-than-expected of negative 0.2% compared with the forecasted 0.1%.
Rob Kent-Smith, Head of GDP at the Office for National Statistics said: "The economy continued to rebound strongly after a weak spring, with retail, food and drink production and house building all performing particularly well during the hot summer months. However, long-term growth continues to lag behind its historical trend."
First data on Wednesday morning
As it is the second week of the month, it is almost empty on the economic calendars. Namely there are only three worth mentioning events scheduled for this week.
First two macroeconomic data releases will occur on Wednesday. At 08:30 GMT the GDP and Manufacturing Production of the United Kingdom will be released. Afterwards, at 12:30 GMT the US PPI and Core PPI data sets will be out.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Wednesday.
All of the mentioned data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is set to be published.
GBP/USD short term review
In regards to the near-term future, most likely, the British pound will trade downwards due to the resistance of the 50.00% Fibo on Wednesday. The simple moving averages will try to catch up the rate during the trading session.On the other side, the rate might pass through the 50.00% Fibo to surge upwards passing through the weekly R1 at the 1.3188 mark to trade at the 1.3200 level.
Hourly Chart
The ascending pattern of the daily chart has been properly confirmed. In accordance with this pattern the currency exchange rate is set to surge higher or trade sideways until November until the pair reaches the upper trend line of a dominant pattern.
Daily chart
By the middle of Wednesday's trading 56% of
Swiss Foreign Exchange traders were long on the GBP/USD. Previously, 54% of
traders were long.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, were no longer perfectly balanced. On Wednesday, 59% of all trader pending orders were to buy.
It was previously already known that at least 55% of Dukascopy traders profited from the surge. On Wednesday, the long trader amount increased. Moreover, there were pending commands set up to open even more long positions.