- The Swiss market is 55% bullish on the pair
- Pending orders in the 100-pip range are 64% set to sell
- On Tuesday watch the US Congressional Elections
The 55-hour simple moving average has been pushing the GBP/USD higher and higher each consecutive day. By the middle of Tuesday's trading the pair had touched the 1.3080 level.
Latest Fundamental Event
The British Pound appreciated against the US Dollar, following the UK Services PMI data release on Monday at 09:30 GMT. The GBP/USD exchange currency rate gained 17 pips or 0.13% during a minute, right after the release. The British Pound continued trading at the 1.3010 area against the US Dollar.
The Markit released UK Services PMI data that came out lower than expected of 52.2, compare to forecasted 53.4.
Chief Business Economist at IHS Markit, Chris Williamson explains :"The disappointing server sector numbers bring mounting evidence that Brexit worries are taking an increasing toll on the economy. Combined with the manufacturing and construction surveys, the October services PMI points to the economy growing at a quarterly rate of just 0.2%, setting the scene for GDP growth to weaken sharply in the fourth quarter…".
Almost empty week for data releases
All of this week's events, which are worth mentioning, are described below
On Tuesday, the US Congressional Elections are taking place. They will impact all of the financial markets through the US Dollar.
On Wednesday, some traders will speculate on the publication of the weekly Crude Oil Inventories at 15:30 GMT. The event will be covered on a live webinar by Dukascopy Analytics.
In addition, on the same day the New Zealand's central bank will announce their Official Cash Rate at 20:00 GMT
On Thursday, the US Federal Reserve's Federal Open Markets Committee will publish their statement and announce the Federal Funds Rate at 19:00 GMT. The event will also be covered on a live webinar by Dukascopy Analytics.
On Friday, at 09:30 GMT the UK GDP and Manufacturing Production data sets will be published. Afterwards, at 13:30 GMT US Producers Price Index will be out. Both events will be covered by Dukascopy Analytics.
GBP/USD short term review
In the near future the currency exchange rate is set to challenge the resistance levels that are located near the 1.3110 mark, where various pivot point levels are located at.Meanwhile, note that the fundamentals from the US Congressional elections will dictate the rules today.
Hourly Chart
On the daily chart it can be spotted that the currency rate broke the descending pattern, as it broke out from the squeeze of the 55 and 100-day simple moving averages to the upside.
Daily chart
Meanwhile, the pending orders in the 100-pip range had become bullish, as 57% of orders were set to buy. Most likely they were opened up to take advantage of a surge that might occur, if the fundamentals force the rate through the previously described resistance levels.