- The Swiss market is 52% bullish on the pair
- Pending orders in the 100-pip range are 65% set to sell
- US elections beat down the US Dollar
The surge of the GBP/USD has continued due to both technical and fundamental reasons. Namely, the simple moving averages have pushed the rate higher prior to the GBP/USD increasing the tempo of the surge during the announcement of the US elections results.
Latest Fundamental Event
The British Pound appreciated against the US Dollar, following the UK Services PMI data release on Monday at 09:30 GMT. The GBP/USD exchange currency rate gained 17 pips or 0.13% during a minute, right after the release. The British Pound continued trading at the 1.3010 area against the US Dollar.
The Markit released UK Services PMI data that came out lower than expected of 52.2, compare to forecasted 53.4.
Chief Business Economist at IHS Markit, Chris Williamson explains :"The disappointing server sector numbers bring mounting evidence that Brexit worries are taking an increasing toll on the economy. Combined with the manufacturing and construction surveys, the October services PMI points to the economy growing at a quarterly rate of just 0.2%, setting the scene for GDP growth to weaken sharply in the fourth quarter…".
Almost empty week for data releases
All of this week's events, which are worth mentioning, are described below
On Wednesday, some traders will speculate on the publication of the weekly Crude Oil Inventories at 15:30 GMT. The event will be covered on a live webinar by Dukascopy Analytics.
In addition, on the same day the New Zealand's central bank will announce their Official Cash Rate at 20:00 GMT
On Thursday, the US Federal Reserve's Federal Open Markets Committee will publish their statement and announce the Federal Funds Rate at 19:00 GMT. The event will also be covered on a live webinar by Dukascopy Analytics.
On Friday, at 09:30 GMT the UK GDP and Manufacturing Production data sets will be published. Afterwards, at 13:30 GMT US Producers Price Index will be out. Both events will be covered by Dukascopy Analytics.
GBP/USD short term review
In regards to the near-term future, most likely, the British Pound will get resisted by the dominant pattern line at 1.3160 mark. It is expected that the rate will be trading at the 1.3120 level during the trading session on Wednesday.On the other side, the 50.00% Fibo at 1.3163 mark could support the rate to break the resistance of the dominant pattern line at the 1.3160 mark to trade at the 1.3200 level during the day.
Hourly Chart
On the daily chart it can be observed that the GBP/USD has pierced the strong resistance cluster at the 1.3110 mark. The event occurred due to the US Congressional elections. In the near future the chart will be updated, as the news are taken in by the markets.
Daily chart
Meanwhile, the pending orders in the 100-pip range are no longer bullish. 70% of set up orders are set to sell.
In general, it can be seen that traders have taken profits after the US elections. Moreover, traders are prepared to short the currency pair, if a retracement downwards occurs.