The GBP/USD has traded almost sideways during this week. Namely, it has remained near the 1.2880 level.
In regards to the near term future, the rate is expected to be pushed down by the 55-hour SMA. Moreover, the move would be consistent with the newly discovered channel down pattern.
US ISM Non-Manufacturing PMI
The Institute for Supply Management (ISM) released the US ISM Non-Manufacturing PMI survey results, which came out better-than-expected of 54.7 compared with the forecast of 53.5.
Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee commented: "According to the NMI, 13 non-manufacturing industries reported growth. The non-manufacturing sector had an uptick in growth after reflecting a pullback in September. The respondents continue to be concerned about tariffs, labor resources and the geopolitical climate."
Economic Calendar
Main attention this week will be set on the Bank of England rate announcement. The rate statement is scheduled for Thursday 12:00 GMT. The announcement has caused immediate moves on the GBP/USD from 18.6 to 43.5 pips since February.Meanwhile, take into account that the week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate traded sideways around the 1.2890 level. During today's morning, the rate was testing the upper boundary of the short-term descending channel at 1.2892.From a theoretical point of view, it is likely that a reversal south could occur in the nearest future. In this case the currency pair could target the weekly S1 located at the 1.2842 mark.
On the other hand, the pair could maintain its consolidation in the short term. Also, it is unlikely that bulls could prevail in the market, and the rate could exceed the Fibo 38.20% at 1.2918.
Hourly Chart
On the daily candle chart, the rate remains in the borders of a large scale ascending channel pattern. It is surging in its borders.
Meanwhile, the daily simple moving averages have been left far below the exchange rate. It is a signal that the GBP/USD is overbought. However, with the Brexit in the background, long term overbought and oversold indicators should better be ignored.
Daily chart
Meanwhile, trader orders were bullish. In the 100-pip range, 70% of orders were to buy and 30% were to sell.
Previously, the orders were 54% to buy. It appears that the short traders have moved their take profits and stop losses closer to the current exchange rate.