- The Swiss market is 65% bullish on the pair
- Pending orders in the 100-pip range are 55% set to buy
- Brexit turmoil continues, and volatility is high
The volatility on the GBP/USD is large. In the matter of a day the currency exchange rate easily bounced up and down by hundred base points. However, as most traders were bullish previously, they might have profited and caught this move in a risky attempt. In regards to the future,
Latest Fundamental Event
The US Bureau of Economic Analysis released US Prelim GDP data that came out lower than expected of 3.5 compared with forecasted 3.6%.
The Bureau of Economic Analysis noted: "Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2018, according to the "second" estimate released by the Bureau of Economic Analysis. The growth rate was unrevised from the "advance" estimate released in October. In the second quarter, real GDP increased 4.2 percent. "
No UK releases this week
On Thursday, the only notable macroeconomic scheduled event, but not a data release, will be the FOMC Meeting Minutes release at 19:00 GMT.Last, but most important for data release traders, will be the Canadian GDP data release at 13:30 GMT. This event is expected to cause the most volatility that a data release can cause. Although, it will be only observable on Canadian Dollar pairs.
GBP/USD short term review
During Wednesday's trading session, the currency exchange rate broke most of the technical indicators to end the trading session at the 1.2818 mark. During Thursday morning hours, the British Pound diminished to trade at the 1.2769 mark.In regards to the near-term future, most likely, the currency exchange rate might trade sideways to stay between the weekly S1 at 1.2750 and the upper boundary of the descending pattern line. Besides, the weekly S1 at 1.2750 should support the rate during the trading session on Thursday.
However, the British Pound could be resisted by the 100-hour simple moving average to pass through the 55-hour simple moving average and the support of the weekly S1 to trade at 1.2700 level.
Hourly Chart
On the daily chart the rather narrow descending pattern was crushed during the last wave of volatility. In general, wait for the Brexit turmoil to end. Then the technical charting of the market can be resumed.
Daily chart
Moreover, traders are prepared to open even more long positions, as 56% of trader set up pending orders are set to buy even more GBP/USD under various circumstances.