- The Swiss market is 56% bullish
- Pending orders in the 100-pip range are 53% set to sell
- US data incoming at 12:30 GMT
The decline of the GBP/USD continues, as expected, gaining new low levels. On Thursday, the pair had touched and bounced off the 1.2867 mark.
Latest Fundamental Event
The British Pound depreciated against the US Dollar, following the UK Retail Sales data release last 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."
Next data for GBP/USD will be on Thursday
On Tuesday, UK Bank of England Governor Carney's Speech did not change the course of the GBP/USD.Meanwhile, note that on Thursday the US Durable Goods Orders will be published at 12:30 GMT. This event is expected to impact the GBP/USD through the strength of the US Dollar.
Besides this event, the publication of the US Advance GDP on Friday at 12:30 GMT might impact the GBP/USD currency exchange rate.
Dukascopy Analytics intend to cover both data releases on the bank's webinar platform.
GBP/USD short term review
On Thursday, the British pound will trade sideways due to supports of the weekly S2 at 1.2880 and the 62.20% Fibo at 1.2867. It is expected that the currency exchange pair will be trading at the 1.2880 level. Meanwhile, the 55-hour SMA will try to catch up the rate to resist the rate during the day.However, the rate could break the support levels of the S2 and the 62.20% Fibo if the US Dollar will appreciate against the British Pound after today's fundamentals.
Hourly Chart
The decline on the daily chart has broken free from all the chart's technical levels. Namely, the 55-day simple moving average was left at the 1.30 mark.
In the next trading sessions, most likely, the GBP/USD will reveal its dominant pattern, which is expected to show the descent of the pair.
Daily chart
In addition, in the 100-pip range around the currency rate trader pending orders are close to neutral. Namely, 53% of orders are set to sell. Previously, 53% were set to buy.
After the large decline, traders have taken profits and closed their short positions. In addition, some have opened long positions, expecting a surge after the decline.