The GBP/USD is being dictated by the turmoil occurring in the UK's Parliament. Namely, the rate was trading with high volatility after the Parliament declined Theresa May's updated Brexit deal.
On Wednesday, the Parliament was set to vote on whether to leave the EU without a deal or ask for an extension of the deadline.
Due to that reason the technical analysis remained insignificantly in the background.
The British Pound depreciated against the US Dollar, following the UK GDP data release on Tuesday at 09:30 GMT. The GBP/USD exchange currency rate lost 32 pips or 0.25% during a minute, right after the release. The British Pound continued trading at the 1.3180 area against the US Dollar.
The Office for National Statistics released UK GDP data that came out better-than-expected of 0.5% compare to forecasted 0.2%. Note, that the Manufacturing Production was released at the same time with the GDP.
Suren Thiru, The Head of Economics at the British Chambers of Commerce, said: "The data for the longer three-month period recorded an economy that was continuing to slow under the weight of uncertainty over Brexit and weakening global trading conditions."
US Durable Goods and PPI at 12:30 GMT
The week's important events will end already on Wednesday. At 12:30 GMT the US Durable Goods Orders and the US Producers Price Index will be released.
For more information watch the weekly calendar analysis stream on our YouTube channel.
GBP/USD short term review
During Tuesday's trading session, the currency exchange rate had high volatility due to the United Kingdom Parliament's meeting on Brexit deal. On Wednesday morning, the rate was supported by the monthly PP to trade at the 1.3140 mark.In regards to the near-term future, most likely, the rate could pass through most of the technical indicators to end the trading session below the weekly pivot point at the 1.3000 level.
However, today's US Core Durable Goods Orders, Durable Goods Orders, US PPI data release at 12:30 GMT might push the rate to break the weekly R1 at 1.3187 to trade at the 1.3200 level for the rest of the trading session.
Hourly Chart
On the daily chart the recent moves have been consistent with a dominant ascending pattern. The rate is retracing downwards in the borders of it.
Previously, it was stated that the decline will reach the 1.3000 level. That target has been touched.
However, there is still more room for a decline. Namely, the 1.2920 level could be reached during the near future.
Daily chart
Meanwhile, the pending orders had changed. In the 100-pip range 77% of orders were set to sell.
In general, Dukascopy traders were shorting the upcoming information that the UK will be economically weaker in the future.