- The Swiss market is 67% bullish on the pair
- Pending orders in the 100-pip range are neutral
- No more UK releases this week
By the middle of Thrusday's trading session the GBP/USD had decreased its volatility, compared to the previous sessions. Moreover, the pair had resumed trading in accordance with technical analysis indicators and levels.
Latest Fundamental Event
The British Pound appreciated against the US Dollar, following the UK Services PMI data release on Wednesday at 09:30 GMT. The GBP/USD exchange currency rate gained 22 pips or 0.17% during a minute, right after the release. The British Pound continued trading at the 1.2735 area against the US Dollar.
The Markit released UK Services PMI data that came out lower than expected of 50.4, compare to forecasted 52.5.
Chris Williamson, Chief Business Economist at IHS Markit said, "A sharp deterioration in service sector growth leaves the economy flatlining in November as Brexit concerns intensified. Measured across services, manufacturing and construction, the survey results suggest that the pace of economic growth has stalled. With the exception of July 2016, when business slumped in the immediate aftermath of the EU referendum, November saw the worst performance since February 2013".
ADP Non-Farms will cause a minor impact on GBP/USD
At 13:15 GMT on Thursday the ADP Non-Farm Employment change will be published and covered by Dukascopy Analytics on the bank's webinar platform and YouTube channel.Moreover, the weekly Crude Oil Inventories will be published at 16:00 GMT. This data release causes bounced in oil prices from half a dollar up to ninety cents.
The day will end with the head of the Federal Reserve testifying before the US Congress at 23:45 GMT.
Last but not least will be the Friday's monthly US and Canadian employment data release at 13:30 GMT. This event will also be covered by Dukascopy Analytics.
GBP/USD short term review
During Wednesday's trading session, the currency exchange rate passed through the SMA's to end the trading session at the 1.2719 mark. During Thursday's morning hours, the British Pound was trading near the weekly S1 at 1.2729.In regards to the near-term future, most likely, the currency exchange rate will keep the trade downwards due to the resistance of the simple moving average. Besides, it is expected that the currency exchange rate will pass through the support of the weekly S1 at 1.2700 to trade below the bottom boundary of the previously drawn pattern at the 1.2680 mark.
However, during today's US fundamental events, the British Pound could appreciate against the US Dollar to trade at the 1.2740 level.
Hourly Chart
The descending pattern was adjusted during the last couple of trading sessions on the daily chart. Note that it is still not to be trusted fully, as it represents the decline of the GPB/USD caused by the markets dumping the Pound due to Brexit talks.
If the deal between the UK and the EU gets approved next week or not, the market will react. That will end the decline.
Daily chart
Meanwhile, trader set up pending orders in the 100-base point range were bouncing around the neutral zone. On Thursday, 51% of orders were set to buy, on Wednesday 51% of orders were set to sell.
In general, traders have picked their sides in regards to the upcoming UK Parliament's vote on the Brexit deal. Most are long, as they expect the deal to be closed.