- The Swiss market is 59% bullish on the pair
- 50% of pending orders in the 100-pip range are set to BUY
- Services PMI on Wednesday at 08:30 GMT
The GBP/USD has passed support at 1.2850 and will go down to the next support level. Namely, the 1.2730 level might be reached soon, if the lower trend line of a pattern does not hold.
The British Pound weakened against the US Dollar, following the United Kingdom Manufacturing PMI release on Monday at 08:30 GMT. The GBP/USD exchange currency rate lost 23 pips or 0.18% at the time of the release. The British Pound kept going downwards after the data release to continue trading at the 1.28 area.
The Markit released Manufacturing PMI data came lower-than-expected. Namely, it was 52.8, compared with the forecast of 53.9.
The PMI report said: "August saw further signs of slowdown in the UK manufacturing sector. Rates of expansion in output and new orders eased following the first contraction in new export business for over two years. The subdued performance of the sector also transmitted itself to the labor market, with the pace of manufacturing job creation slumping to near-stagnation".
Month begins with PMIs
Throughout the week the GBP/USD rate will bounce around many times due to macroeconomic data releases. Due to that reason the events will be laid out step by step, as they are approach.
On Tuesday, a minor reaction could be caused by the publication of the US ISM Manufacturing PMI at 14:00 GMT.
On Wednesday, look out for the most important data for the GBP/USD this week. The UK Services PMI will be published at 08:30 GMT. This data set is most likely going to cause a reaction around 20 base points.
Both data releases will be covered by Dukascopy Analytics. Click on the notification on the JForex platform ten minutes before the release to join the live webinar.
GBP/USD short term review
The British Pound tested and passed the weekly S1 at the 1.2850 mark on Tuesday morning. Next target was the lower trend line of a medium term pattern, which in theory should be broken.Watch whether the trend line holds its ground. If it gets passed, the 1.2730 level will be targeted. If not, the 1.2850 will provide resistance.
Hourly Chart
The 55-day simple moving average can be observed on the Daily chart as the one, who pushed the rate lower on Thursday. The recent fall was only a continuation of the decline, which was caused by the SMA.
Meanwhile, a large scale speculative pattern has been added to the chart. If the rate resumes its surge in the future on the chart and aims for the upper trend line of the channel in the same angle, as the recent surge, the rate could reach the 1.3300 level by October.
Daily chart
The Swiss trader sentiment remains largely bullish. Namely, traders of the Swiss Foreign Exchange were long in 59% of all of their open positions.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, are set to sell the pair in 54% of all cases. This fact combined with the knowledge that the orders were to buy yesterday indicates that the retail traders are undecided in regards to the pair's short term future.
Meanwhile, OANDA traders remain largely bullish, as 60% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 56% long on the GBP/USD pair.
Spreads (avg, pip) / Trading volume / Volatility