- The Swiss market is 58% bullish
- Pending orders in the 100-pip range are 57% set to sell
- Services PMI incoming on Monday
On Friday, GBP/USD traded above the 1.30 mark after the massive gains of Thursday. Although, the rate was expected to gain even more, as the pair had reached above the resistance of the weekly R1 near the 1.3020 mark.
Latest Fundamental Event
The British Pound appreciated against the US Dollar, following the UK BOE Official Bank Rate data release on Thursday at 12:00 GMT. The GBP/USD exchange currency rate gained 29 pips or 0.22% during a minute, right after the release. The British Pound continued trading at the 1.2910 area.
The Bank of England released Bank of England Official Bank Rate data that came out in line with expectations of 0.75%. The Votes and Monetary Policy Summary together with the MPC Official Bank Rate data release came out today at 12:00 GMT, in which all votes were in favor to hold the rate unchanged.
Mark Carney, the Bank of England Governor said: "Business is taking a very cautious approach right now because we're at the point of, if not maximum uncertainty, close to maximum uncertainty, and there's not that much time left until there will be clarity so waiting a bit of time is understandable."
US Employment Friday and UK Services PMI on Monday
On Friday, The US Employment data sets, which will be published at 12:30 GMT, will impact the GPB/USD through the strength of the US Dollar.
Meanwhile, for GBP/USD traders it is more important to note that his month the UK Services PMI will be released on a Monday. Namely, next Monday at 09:30 GMT the data release will occur.
All of these data releases will be covered by Dukascopy Analytics on the bank's webinar platform. It can also be watched on Dukascopy Webinars YouTube channel through a live stream.
GBP/USD short term review
On Friday morning, the British pound broke the resistance of the weekly R1 at 1.3024 to trade at the 1.3023 mark.In regards to the near-term future, the British Pound will bounce off the bottom boundary of the small pattern line at the 1.3055 mark. Most likely, the currency exchange rate will be retraced to trade sideways at the 1.2950 level during the day.
Hourly Chart
The previous forecast of the daily chart has become reality. Although, take into account a couple of other aspects of the chart that provide assistance on Friday.
First of all note the fact that the rate is squeezed in between the 55 and 100-day simple moving averages respectively at 1.3008 and 1.3045. Moreover, the upper trend line of the medium pattern is still located above the pair.
Daily chart
In addition, sell orders in the 100-pip range had also decreased. Instead of 71% of orders being set to sell, 57% of orders were set to sell.
In general, traders have started to take profits from the surge. Although, some still remain long on the GBP/USD.