- The Swiss market is 51% bullish
- Pending orders in the 100-pip range are set to buy in 58% of cases
- On Tuesday, UK Bank of England Governor Carney Speech at 15:20 GMT may cause short-term rates direction during the speech time.
The GBP/USD has declined even more than expected. the British trades between the pivot points to stay at 1.3020 level.
Latest Fundamental Event
The British Pound depreciated against the US Dollar, following the UK Retail Sales data release on Thursday at 08:30 GMT. The GBP/USD exchange currency rate lost 8 pips or 0.06% during a minute, right after the release. The British Pound continued trading at the 1.3101 area.
The Office for National Statistics released UK Retail Sales data that came out lower-than-expected of negative 0.8% compared with forecasted negative 0.4%.
The ONS Head of Retail Sales Rhian Murphy said: Retail continued to grow in the three months to September with jewellery shops and online stores seeing particularly strong sales. This was despite a stark slowdown in food sales in September, following a bumper summer."
On Tuesday, UK Bank of England Governor Carney Speech at 15:20 GMT may cause short-term rates direction during the speech time.
For the rest of the week there will be no macroeconomic data releases that might influence the GBP/USD. Although, macroeconomic data release traders are still set to be active this week.For the first two days of the week there will be no macroeconomic data releases that might influence the GBP/USD. Although, macroeconomic data release traders are still set to be active this week.
The data release with the biggest impact will be on Friday. The Bureau of Economic Analysis will publish the Advance GDP q/q and the Advance GDP Price Index q/q at 12:30 GMT.
GBP/USD short term review
On the hourly chart there are two scenarios for the GBP/USD.The rate might pass the resistance levels just below the 1.3040 mark and surge up to the 55-hour simple moving average near the 1.3057 level.
On the other hand, the rate would bounce off the resistance near the 1.3040 mark and decline. As the GBP/USD declines, it would approach and test the support of a large scale ascending pattern. Although, note the daily chart to see why this pattern should be passed.
Hourly Chart
The currency exchange rate has clearly bounced off the upper trend line of the dominant descending channel pattern. This has resulted in a decline, which is about to test the support of the lower trend line of a junior pattern.
The support line, which is strengthened by the 55-day simple moving average at 1.3000, is expected to slow down the decline. Although, eventually, the pair should pass it and continue to decline.
Daily chart
On Monday morning 51% of Swiss traders were long. Previously, 52% of traders were short.
Meanwhile, in the 100-pip range around the currency rate 53% of trader pending orders are set to buy. Previously, 62% of trader set up pending orders were to sell.
In general, the traders are still cautious about an upcoming decline, but they are prepared to short it, as the rate moves lower.