- The Swiss market is 54% bullish
- Pending orders in the 100-pip range are set to sell in 60% of all cases
- First data will be released on Wednesday
The GBP/USD had retreated down to 1.3050 on Tuesday. Meanwhile, it was expected that the support at that level might provide the needed momentum for the rate to surge to the 1.31 mark.
Last week the British pound depreciated against the US Dollar, following the UK Services PMI data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate lost 3 pips or 0.02% during a minute, right after the release. In the next minutes the rate was trading at the 1.3005 level.
The Markit released the UK Services PMI data that came out lower-than-expected of 53.9, compare to forecasted 54.0.
Chris Williamson, the Chief Business Economist .said: "The service sector continued to report solid steady business growth in September which, alongside news of sustained expansions in both manufacturing and construction, suggests the UK economy expanded by just under 0.4 per cent in the third quarter."
First data on Wednesday morning
As it is the second week of the month, it is almost empty on the economic calendars. Namely there are only three worth mentioning events scheduled for this week.
First two macroeconomic data releases will occur on Wednesday. At 08:30 GMT the GDP and Manufacturing Production of the United Kingdom will be released. Afterwards, at 12:30 GMT the US PPI and Core PPI data sets will be out.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Wednesday.
All of the mentioned data releases will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is set to be published.
GBP/USD short term review
In regards to the near-term future, most likely, the British pound will move upwards to the 1.3100 level due to support of the 100-hour and the 200-hour SMAs together with the support of the weekly PP at the 1.3055 mark. The rate should pass the 55-hour SMA to surge upwards during the day.However, the currency pair may trade sideways to stay at the 1.3060 level on Tuesday.
Hourly Chart
The ascending pattern of the daily chart has been properly confirmed. In accordance with this pattern the currency exchange rate is set to surge higher or trade sideways until November until the pair reaches the upper trend line of a dominant pattern.
Daily chart
By the middle of Tuesday's trading 54% of Swiss Foreign Exchange traders were long on the GBP/USD.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, were perfectly balanced.
In general, the retail traders of Dukascopy and its associate firms have profited, as it is known that more than 55% of traders were long during the pair's surge above 1.30.