- The Swiss market is 51% bullish
- Pending orders in the 100-pip range are neutral
- Next notable data release is on Monday
By the middle of Friday's trading the GBP/USD had met resistance above 1.3250. Although, the rate was still expected to surge, as the 55-hourly simple moving average had moved upwards and provided support at 1.3200.
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."
No more data this week
This week's data releases have passed. There are no important macroeconomic data releases set to occur on Friday.
However, take note that already on Monday the data releases will resume. At 12:30 GMT the US Retail Sales and Core Retail Sales will be published.
The event will be covered by Dukascopy Analytics on the bank's webinar platform. The cover will begin at 12:20 GMT.
GBP/USD short term review
In regards to the near-term future, most likely, the currency exchange rate will break the resistance of the weekly R2 at the 1.3256 due to the support of the 55-hour SMA and the support of the large pattern line to trade at the 1.3260 level.On the other side, the British pound might get resisted by the weekly R2 to move the rate to trade sideways at the 1.3220 level during the trading session.
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
On Friday, only 51% of traders were long. By the middle of Thursday's trading 53% of Swiss Foreign Exchange traders were long on the GBP/USD. Before that, 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 Friday, 57%of all trader pending orders were set to buy.
It can be observed that the traders, which were long during this week have taken profit. Meanwhile, buy orders still dominate, indicating that the rate could surge, if there is an initial push of the pair higher caused by fundamentals or the breaking of a strong resistance level.