- The Swiss market is 65% bullish on the pair
- Pending orders in the 100-pip range are set to buy in 51% of cases
- 20 to 40 pips at 13:30 GMT on US Employment data
After once more testing a dominant resistance level at 1.2800 the GBP/USD declined on Friday. In general, the GBP/USD from a technical analysis perspective was expected to decline down to the 1.2700 level, where a pivot point is providing support to the currency exchange rate.
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
Last but not least this week 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.For this pair during the last half a year the data release has caused a move from 20 to 40 base points. If your stop loss is closer than that, it is most likely going to get triggered.
GBP/USD short term review
The British currency on Thursday found support in the pivot point at 1.2700 and surged through various simple moving averages to reconfirm the upper trend line of the large scale descending pattern near 1.2800.By the middle of Friday's trading session the GBP/USD was retreating downwards from one support level to another. The pair was expected to pass the support levels at 1.2750 and decline down to the 1.2700 level. Afterwards, the lower trend line of a medium scale pattern near 1.2680 should be approached.
Meanwhile, note that any of the support levels might stop the decline. Moreover, the Brexit news still highly impact all of the GBP pairs causing sudden swings up and down.
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. Since 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.