- The Swiss market is 53% bullish
- 66% of pending orders in the 100-pip range are set to SELL
- Minor US data on Wednesday
On Wednesday, the GBP/USD was trading near the 1.3010 mark, from which it might surge up to 1.3040 or fall down to 1.2950. Namely, the future lies in whether the pair manages to break the resistance of the 55-hour simple moving average.
The British pound depreciated against the US Dollar, following the UK Construction PMI data release on Tuesday at 08:30 GMT. The GBP/USD exchange currency rate lost 5 pips or 0.04% during a minute, right after the release. In the next minutes the rate was trading at the 1.2963 area.
The Markit released the UK Construction PMI data that came out lower-than-expected of 52.1, compare to forecasted 52.8.
Tim Moore, associate director at IHS Markit, said. "Construction companies continued to note that political uncertainty acted as a key drag on decision-making, with Brexit worries encouraging a wait-and-see approach to spending among clients,".
US Data in second half of Wednesday
There will be notable data releases on Wednesday and Friday in the US that will impact the strength of the US Dollar and with it all of the currency pairs where it is involved.
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change will be published. On the same day the ISM Non-Manufacturing PMI will be released at 14:00 GMT. Both data releases will be covered by Dukascopy Analytics on the bank's live webinar platform.
In addition, all traders should note that on Friday at 12:30 GMT the US employment data sets like the Employment Change and Average Hourly Earnings will be published. By some financial media this event is seen as the most important of them all.
GBP/USD short term review
In the near-term future, the 55-hour simple moving average will try to resist the rate from surge during the day. Most likely, the rate will move downwards to trade near the weekly S1 at the 1.2948 mark.On the other side, the UK Service PMI release could push the rate to surge upwards to break the 55-hour SMA resistance to allocate the rate near the monthly PP at the 1.3038 mark.
Hourly Chart
The freshest update to the situation on the daily chart is that the 55-day simple moving average failed to provide support on Tuesday.
Meanwhile, the long term ascending pattern remains broken and no other medium term pattern has been spotted in the aftermath of the US Federal Funds Rate hike.
Daily chart
On Wednesday, 53% of trader open positions were long. Traders became slightly bullish at the start of the week.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, were set to sell in 56% of all cases.
In general, Swiss traders have opened long positions in expectations of a reversal of the recent decline while still being ready to close their longs and open short positions, if the currency rate declines.