- The Swiss market is 63% bullish on the pair
- Pending orders in the 100-pip range are 53% set to buy
- Watch Brexit talks and announcements
The pair has broken the support line of a medium scale pattern. The event occurred due to the additional technical resistance of the 55 and 200-hour simple moving averages. Although, by the middle of Tuesday's trading the pair had stopped the decline at a weekly pivot point support level.
Latest Fundamental Event
On Wednesday, the Census Bureau released US Core Durable Goods Orders data that came out lower than expected of 0.1 compared with forecasted 0.4%. Moreover, the US Durable Goods Orders data came out together with the US Core Durable Goods Orders with the data lower-than-expected of negative 4.4% compared with the forecasted negative 2.2%.
"New orders for manufactured durable goods in October decreased $11.5 billion or 4.4 percent to $248.5 billion", the U.S. Census Bureau announced today.
No UK releases this week
This week is the last one of the month. That means that it is bound to be empty in regards to macroeconomic data releases.First notable data release will occur this week on Wednesday. The US Preliminary GDP data will be published at 13:30 GMT. This data release is considered to be the most important among macroeconomic statistics. Although, it causes an increase of volatility around 10 to 20 base points.
On Wednesday, at 15:30 GMT the weekly US Crude Oil Inventories will be published and cause a bounce in oil prices.
On Thursday, the only notable macroeconomic scheduled event, but not a data release, will be the FOMC Meeting Minutes release at 19:00 GMT.
Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.
GBP/USD short term review
As the various simple moving averages approached the currency exchange rate, the GBP/USD plummeted down below the support line of a medium scale ascending pattern. The event resulted in a sharp decline on Tuesday morning.During the decline the pair passed the support of the weekly S1 at the 1.2750 mark. Due to that reason the rate is expected to reach for the next support level during today's trading session. Namely, the 1.2676 level will be targeted. At that level the second weekly support is located.
On the other hand, any sharp decline is usually followed by a retracement upwards or a consolidation period. In addition, note the background Brexit fundamentals, which creates sharp moves in the rate.
Hourly Chart
From the daily chart's perspective the currency exchange rate has bounced off the resistance line of a large scale descending channel pattern. In the borders of the pattern it should soon reach the 1.2890 level. At that level the weekly S3 should meet the currency rate by the end of the week.
Daily chart
Moreover, buy orders dominate the trader set up pending orders. Namely, in the 100-pip range 53% of orders were set to buy on Tuesday.