- The Swiss market is 52% bullish on the pair
- Pending orders in the 100-pip range are 53% set to sell
- US Federal Funds Rate at 19:00 GMT
On Thursday, the Pound had retreated to levels below the 1.3100 mark by the middle of the London session. In general, the rate could decline down to 1.3070 mark, where an SMA is located at. Although, the market is expecting the US Federal Reserve rate announcement that is expected to set the background for the US Dollar's strength.
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…".
US FOMC announcement at 19:00 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 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
As the GBP/USD is expecting the US Federal Reserve Announcement, it has plummeted below technical levels, which were located near the 1.3110 level. Most likely the rate will be trading near the 1.31 mark until the announcement occurs.Although, note that the rate was being approached by additional support from the 100-hour simple moving average.
Hourly Chart
On the daily chart it can be observed that the pair is finding support in the previously pierced trend lines near the 1.3100 level. However, as the trend lines should be already ignored it is more likely that the psychological support of the round price level is actually providing the support.
Daily chart
Meanwhile, the pending orders in the 100-pip range are bearish. Namely, 57% of pending orders are set to sell the GBP/USD.
In general, the situation has no changed since Wednesday. It can be seen that traders have taken profits after the US elections. Moreover, traders are prepared to short the currency pair.