- The Swiss market is 51% bearish
- 60% of pending orders in the 100-pip range are set to SELL
- Canadian GDP in focus
The GBP/USD has passed the support of a dominant pattern near the 1.3120 level. The breaking began a decline, as it was forecast on Thursday. The rate is heading for the 1.2990 level, where the next support level is located at.
The British pound depreciated against the US Dollar, following the UK Current Account data release on Friday at 08:30 GMT. The GBP/USD exchange currency rate lost 26 pips or 0.20% during a minute, right after the release. In the next minutes the rate was trading at the 1.3060 area.
The Office for National Statistics released the UK Current Account data that came out lower-than-expected of negative 20.3 B, compare to forecasted negative 19.4 B.
"Although it has picked up a little from a slow start to the year, underlying economic growth remains persistently below the long-term average," said Rob Kent-Smith, head of national accounts at the ONS.
CAD GDP release at 12:20 GMT
Macroeconomic data release traders need to take into account that there will be more releases on Friday.
At 08:30 GMT the UK Current Account will be published, and at 12:30 GMT the Canadian GDP data will be published.
Both events will be covered by Dukascopy Analytics on the bank's live webinar platform. The webinars will start ten minutes before the data is released.
GBP/USD short term review
In the near-term future, most likely, the rate will keep trading downwards due to a lock of the technical indicators and any support levels which might stop the British pound from bearish outlook on Friday. The rate might fall below the 1.30 level in the next couple of days.On the other hand, the UK Current Account data release at 8:30 GMT on Friday may change the direction of the currency pair to recover itself from trading near the bottom boundary of the medium ascending line at the 1.3140 mark.
Hourly Chart
The ascending pattern was broken on Thursday, signalling a decline of the currency exchange rate.
Meanwhile, note that the weekly first support level at 1.2990 was strengthened by the 55-day simple moving average.
Daily chart
Previously, 54% of traders were short on Thursday. On Friday, 51% of trader open positions were short. This indicates that those traders have taken profit from their short positions.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, were neutral on Thursday. By Friday, they had become bearish. Namely, 57% of trader set up orders were set to sell the GBP/USD.
GBP/USD traders have taken advantage of the recent decline. Namely, they were short already before the US rate hike and closed their positions only two days later when the fall of the GBP/USD was larger than 130 base points.