- The Swiss market is 61% bullish on the pair
- Pending orders in the 100-pip range are 54% set to buy
- Watch Brexit talks and announcements
After the highly volatile surge of Thursday GBP/USD had slowly retreated down to the 1.2800 level. The rate was expected to continue to decline from a technical perspective. However, the Brexit fundamentals are still looming in the background.
Latest Fundamental Event
On Wednesday, the Census Bureau released US Core Durable Goods Orders data that came out lower than expected of 0.1 compared with forecasted 0.4%. Moreover, the US Durable Goods Orders data came out together with the US Core Durable Goods Orders with the data lower-than-expected of negative 4.4% compared with the forecasted negative 2.2%.
"New orders for manufactured durable goods in October decreased $11.5 billion or 4.4 percent to $248.5 billion", the U.S. Census Bureau announced today.
Last notable data release will come from Canada on Friday
Note that on Friday at 13:30 GMT the Canadian CPI and Core Retail Sales data will be published. This event is expected to cause immediate fluctuations in the strength of the Canadian currency.GBP/USD short term review
In regards to the near-term future, in all likelihood, the British Pound will trade upwards to break the 62.20% Fibonacci retracement level at 1.2867 to trade at the 1.2900 level. The 55-hour and the 100-hour simple moving averages will support the surge during the trading session on Friday.However, the 200-hour SMA together with the resistance of the 62.20% Fibo could retrace the British Pound to trade downside to the 1.2800 level.
Hourly Chart
From the daily chart's perspective, the GBP/USD is set to reach for the 1.2685 mark where the weekly S1 is located at.
Daily chart
Traders have changed their pending orders. 55% of set up orders were set to buy on Friday.
Previously, pending orders in the 100-base point range were set to sell the pair, as 56% of the orders in the range were short.