- The Swiss market is 51% bullish
- Pending orders in the 100-pip range are neutral
- On Tuesday, UK Bank of England Governor Carney Speech at 15:20 GMT may cause short-term rates direction during the speech time.
On Tuesday, the GBP/USD traded between the resistance of the previously passed support of a large scale channel up pattern and the support of the weekly S1 at the 1.2975 mark.
Latest Fundamental Event
The British Pound depreciated against the US Dollar, following the UK Retail Sales data release on Thursday at 08:30 GMT. The GBP/USD exchange currency rate lost 8 pips or 0.06% during a minute, right after the release. The British Pound continued trading at the 1.3101 area.
The Office for National Statistics released UK Retail Sales data that came out lower-than-expected of negative 0.8% compared with forecasted negative 0.4%.
The ONS Head of Retail Sales Rhian Murphy said: Retail continued to grow in the three months to September with jewellery shops and online stores seeing particularly strong sales. This was despite a stark slowdown in food sales in September, following a bumper summer."
Bank of England Governor speaks today
On Tuesday, UK Bank of England Governor Carney Speech at 15:20 GMT may cause short-term rates direction during the speech time.Besides this event, only the publication of the US Advance GDP on Friday at 12:30 GMT might impact the GBP/USD currency exchange rate. Dukascopy Analytics intend to cover this data release on the bank's webinar platform.
GBP/USD short term review
On Tuesday, the GBP/USD continued its decline, which was occurring after the rate passed the support line of a large scale channel up pattern.Although, by the middle of Tuesday's trading the rate had surged back up to the passed trend line to support it as resistance. Such moves happen often after the breaking of larger patterns.
In general, it is expected that the rate will bounce off the trend line near the 1.30 level and decline down to the 1.2975 level where the weekly S1 is located at.
Hourly Chart
As it was expected, the support of the large scale ascending pattern and the 55-day simple moving averages were passed on Monday.
This is a clear signal that the rate will descent in the upcoming months.
Meanwhile, note that Brexit news might change the situation.
Daily chart
Since Monday morning 51% of SWFX traders were long. The sentiment was also close to neutral before the weekend.
In addition, in the 100-pip range around the currency rate trader pending orders are neutral.
In general, traders are very cautious about the GBP/USD, as Brexit news might cause sudden bounced and crash all technical indicators and drawings.