- The Swiss market is 54% bullish
- Pending orders in the 100-pip range are set to buy in 67% of all cases
- US data incoming at 12:30 GMT
The GBP/USD has continued to surge, as expected. By the middle of Thursday's trading session the GBP/USD fluctuated at the 1.3200 level.
The US dollar strengthened against the British Pound, following the UK GDP and Manufacturing Production data release. The GBP/USD currency pair lost 8 pips, or 0.06%. The British pound kept going downwards after the data release to continue trading at the 1.3159 area.
The Office for National Statistics released Gross Domestic Product data that came lower-than-expected of 0.0% with the forecasted 0.1%. Moreover, UK Manufacturing Production data came out together with the UK GDP data release with the data lower-than-expected of negative 0.2% compared with the forecasted 0.1%.
Rob Kent-Smith, Head of GDP at the Office for National Statistics said: "The economy continued to rebound strongly after a weak spring, with retail, food and drink production and house building all performing particularly well during the hot summer months. However, long-term growth continues to lag behind its historical trend."
Last US data of the week at 12:30 GMT
First two macroeconomic data releases occurred on Wednesday. Namely, the GDP and Manufacturing Production of the United Kingdom and the US PPI and Core PPI data sets were released.
The third event will be the publication of the US CPI and Core CPI data at 12:30 GMT on Thursday.
In addition, data release traders will watch the publication of the weekly US Crude Oil Inventories at 15:00 GMT.
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 rate should bounce off the upper boundary of the large descending pattern to trade at the 1.3160 level during the day.However, today's UK fundamental data sets may push the rate higher to break resistances to surge to the 1.3250 level on Thursday.
Hourly Chart
The ascending pattern has pushed the rate higher and higher. However, on Thursday the currency exchange rate was already close by to the upper trend line of a dominant pattern.
Due to that reason the surge of the GBP/USD might end soon, and a decline could begin.
Daily chart
By the middle of Thursday's trading 53% of Swiss Foreign Exchange traders were long on the GBP/USD. Previously, 56% of traders were long.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, were bullish. On Thursday, 67%of all trader pending orders were set to buy.
It can be deducted that some retail traders have already taken profit from the recent surge. However, there is a large domination of buy orders, indicating that, if the pair passes certain resistance levels, traders will buy.