- The Swiss market is 58% bullish
- Pending orders in the 100-pip range are 53% set to buy
- US Advance GDP incoming at 12:30 GMT
The decline of the GBP/USD continues, as expected, gaining new low levels. On Thursday, the pair had touched and bounced off the 1.2867 mark.
Latest Fundamental Event
The British Pound depreciated against the US Dollar, following the UK Retail Sales data release previous 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."
US Advance GDP closes the week
There is one data release left this week, which might impact the financial markets through the strength of the US Dollar.
The US Advance GDP will be published at 12:30 GMT. The data release will be covered by Dukascopy Analytics on the bank's webinar platform.
GBP/USD short term review
In regards to the near-term future, most likely, the British pound will move towards the monthly S1 at 1.2778 to trade at the 1.2780 level. The simple moving averages will try to catch up the rate during the trading session.Besides, none of today's fundamental news could affect the exchange currency pair to surge upwards to the 62.20 % Fibo or break the support levels of the monthly S1 at 1.2778 and weekly S3 at 1.2749 on Friday.
Hourly Chart
The GBP/USD has continued to decline in a narrow pattern on the daily chart. It can be observed that this type of narrow channel is unlikely going to continue to guide the rate for long.
Instead expect the reveal of a medium scale pattern on the daily chart next week, when the decline should end and a new reference point for charting will be available.
Daily chart
In addition, in the 100-pip range around the currency rate trader pending orders are set to buy the pair in 57% of cases.
During the large decline, traders have taken profits and closed their short positions. In addition, some have opened long positions, expecting a surge after the decline.