- The Swiss market is 58% bullish on the pair
- Pending orders in the 100-pip range are 57% set to sell
- No data releases, watch Brexit news
After plummeting 286 base points on Thursday, the GBP/USD was recovering. Although, what the financial media called a recovery was a slow move upwards of 100 base points to the closest technical resistance level.
Latest Fundamental Event
The British Pound depreciated against the US Dollar, following the UK Retail Sales data released on Thursday at 09:30 GMT. The GBP/USD exchange currency rate lost 16 pips or 0.13% during a minute, right after the release. The British Pound continued trading at the 1.2810 area against the US Dollar.
The Office for National Statistics released UK Retail Sales data that came out lower than expected of negative 0.5%, compare to forecasted positive 0.2%.
The Office for National Statistics noted, "In the three months to October 2018, the quantity bought in retail sales increased by 0.4% when compared with the previous three months; a slowdown to growth when compared with the strong summer sales, which reached a high of 2.3% in the three months to July".
Fundamental data is over this week
No more notable data will be published this week. Macroeconomic data traders will wait for Monday.For more in-depth analysis of this week's fundamental economic events watch the weekly Monday's Poking the Economic Calendar webinar, which is live each Monday at 12:00 both on Dukascopy telefision and YouTube.
GBP/USD short term review
In regards to the near-term future, most likely, the British Pound might get resisted by the weekly S2 at 1.2820 mark to trade downwards near the bottom boundary of the medium descending pattern line at the 1.2700 level. Besides, the 55-hour and the 100-hour simple moving averages will try to catch up the rate during the day.On the other side, the British Pound could break the resistance of the weekly S2 at 1.2820 mark to trade near the 62.20% Fibonacci retracement level at the 1.2864 mark.
Hourly Chart
On the daily chart the descending pattern has been added. Note that previously the reveal of the medium descending pattern was already expected.
In addition, note that the Brexit bounce downwards occurred consistently with the rate meeting additional resistance levels on the daily chart. Namely, the 55 and 100-day simple moving averages were located just below the 1.3040 level and provided resistance on Thursday.
From the daily chart's perspective, the GBP/USD is set to reach for the 1.2680 mark where the weekly S3 is located at.
Daily chart
Pending orders in the 100-base point range are no longer set to buy the pair. Instead, 56% of all set up orders are set to sell.
Traders are riding the surge, which is occurring after the large drop. However, compared to Thursday, on Friday traders had set up close by sell orders.
The orders most likely are close by stop losses and take profits that would close the long positions.