- The Swiss market is 63% bullish on the pair
- 66% of pending orders in the 100-pip range are set to sell
- Nothing for the GBP from fundamental perspective
The GBP/USD pair was breaking patterns on Tuesday, as the recently drawn junior pattern was broken. The charts of this currency exchange rate will need a full review in the near future.
The Greenback weakened against the British Pound, following the United Kingdom Retail Sales release. The GBP/USD currency pair gained 20 pips, or 0.16%.
The Office for National Statistics released UK Retail Sales data that came better-than-expected at 0.7% with the forecasted of 0.2%. The actual data is good for the currency because there come more opportunities for the change in the total value of inflation-adjusted sales at the retail level.
The Office for National Statistics senior statistician, Rhian Murphy said: "Many consumers stayed away from some high street stores in July, but online sales were very strong, supported by several retailers launching promotions. Food sales remained robust as people continued to enjoy the World Cup and the sunshine."
Couple of releases during the week
It is the last week of the month, due to that reason there are almost no notable events scheduled for the most part of the week, which might cause large fluctuations in the currency markets.
On Wednesday, the US Preliminary GDP will be released at 12:30 GMT. The data, in theory, should provide a large reaction in the financial markets. Live event cover on the Dukascopy Webinar platform by Dukascopy Analytics will start at 12:20 GMT.
On the same day the weekly US Crude Oil Inventories data release will be published at 14:30 GMT, which has given bounces of at least 0.5 USD or 50 base points throughout the summer. Although, note that two times the data release disappointed macroeconomic release traders.
The week's last notable event will be the publication of the monthly Canadian GDP at 12:30 on Thursday. This data set is set to give the largest reaction from all of the releases, as CAD GDP has been constantly giving a reaction of at least 40 base points each month on the USD/CAD.
GBP/USD bounces off resistance
The Pound has broken the resistance of a medium term descending pattern against the US Dollar. However, the resulting surge was stopped by a dominant descending pattern's resistance line together with the 61.80% Fibonacci retracement level at the 1.29 mark.On Tuesday morning the rate had bounced off the resistance line and retreated already down to the first support level that paused its decline. Namely, the 100-hour simple moving average stopped the decline.
In regards to the future, watch the SMAs for guidance. If they get passed, the weekly PP will be aimed at. On the other hand SMAs might push the rate higher.
Hourly Chart
Just like on many other pair charts, the upper trend line of the dominant pattern on the GBP/USD daily candle chart has been broken. The currency exchange rate was set to surge up to the 1.2935, as the weekly pivot point held its ground.
A review of the larger scale will be conducted when there are new reference points observable.
Daily chart
The Swiss trader sentiment remains largely bullish. Namely, traders of the Swiss Foreign Exchange were long in 63% of all of their open positions.
However, additional long positions are unlikely going to be open. Retail traders of the Swiss Foreign Exchange have set up 55% of all of their pending trade orders to sell.
Meanwhile, OANDA traders remain largely bullish, as 68% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 61% long on the GBP/USD pair.
Spreads (avg, pip) / Trading volume / Volatility