- The Swiss market is 63% bullish
- Pending orders in the 100-pip range are 70% set to sell
- UK data and Bank of England announcements
On Thursday the long awaited surge of the GBP/USD occurred. It was expected by all the bullish traders of the pair and our analysts, which expected the narrow surge to end.
Latest Fundamental Event
The Automatic Data Processing, Inc. released US ADP Non-Farm Employment Change data that came out better than expected of 227K, compare to forecasted 188K.
"Despite a significant shortage in skilled talent, the labour market continues to grow," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "We saw significant gains across all industries with trade and leisure and hospitality leading the way. We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire."
UK data and Bank of England
On Thursday, at 09:30 GMT the UK Manufacturing PMI was published and caused a bounce of only 10 base points.
At 12:00 GMT the Bank of England Official Bank Rate will be announced. This is the main event for the rate. Historically, it has caused fluctuations of at least 30 base points.
On Friday, The US Employment data sets, which will be published at 12:30 GMT, will impact the GPB/USD through the strength of the US Dollar.
All of these data releases will be covered by Dukascopy Analytics on the bank's webinar platform. It can also be watched on Dukascopy Webinars YouTube channel through a live stream.
GBP/USD short term review
In regards to the near-term future, most likely, the British pound will break the resistances of the monthly PP at 1.2900 and the weekly PP at 1.2907 due to the support of the 200-hour SMA together with the support of the 62.20% Fibo.On the other side, the trading day is mostly focused on the UK fundamentals news which might significantly affect the rate. Moreover, during the data releases, the rate could depreciate against the US Dollar to trade downwards to the 1.2800 level.
Hourly Chart
The narrow decline of the GBP/USD has finally ended. It has provided an additional reference point for drawing a medium pattern on the daily chart.
In accordance with the new pattern, the rate should surge up to the 1.30 mark as soon as it passes the 1.29 level.
Daily chart
In addition, in the 100-pip range around the currency rate trader pending orders are set to sell the pair in 71% of cases.
In general, it can be seen that Dukascopy traders took advantage of the recent surge. However, the long positions remain open.
Meanwhile, by looking at the pending orders, it becomes obvious that traders have prepared to sell the pair by closing the long positions.