- The Swiss market is 63% bullish
- Pending orders in the 100-pip range are 61% set to buy
- Minor impact expected from CB Consumer Confidence
The decline of the Pound continues, as the 1.2710 level was targeted next. On Tuesday morning the support at 1.2780 was passed.
Latest Fundamental Event
On Friday, the Bureau of Economic Analysis released US Advance GDP data that came out better than expected of 3.5%, compare to forecasted 3.3%.
The Bureau of Economic Analysis noted: "The deceleration in real GDP growth in the third quarter reflected a downturn in exports and a deceleration in non-residential fixed investment. Imports increased in the third quarter after decreasing in the second. These movements were partly offset by an upturn in private inventory investment".
Minor data at 14:00 GMT
On Tuesday, the US CB Consumer Confidence data will be published at 14:00 GMT. It shown on many economic calendars as a high impact data release. However, historically the data release has caused no notable impact on the currency markets,
Although, due to due diligence the data release will be covered by Dukascopy Analytics. The cover webinar and YouTube stream will begin at 13:50 GMT.
GBP/USD short term review
The daily technical analysis picture for the GBP/USD has already become outdated, as the pair has already passed support level at 1.2780The rate is heading next for the weekly S1 at the 1.2710 level.
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 61% of cases.
Traders continued to expect a rebound of the GBP/USD after the long lasting decline of the currency exchange rate. Meanwhile, on Tuesday a lot of buy orders were set up, which were there for the same reason.