The GBP/USD has jumped due to another Brexit fundamental. Namely, Brexit financers revealed to Reuters that the UK will most likely reverse the Brexit decision.
The country can do that on its own. It was ruled by the European Union's highest court a couple of months ago that the United Kingdom has the right to drop the Brexit and remain in the EU.
The British Pound appreciated against the US Dollar, following the UK GDP data release on Friday at 09:30 GMT. The GBP/USD exchange currency rate gained 6 pips or 0.05% during a minute, right after the release. The British Pound continued trading at the 1.2765 area against the US Dollar.
Rob Kent-Smith, the head of national accounts at the Office for National Statistics revealed, "Growth in the UK economy continued to slow in the three months to November 2018 after performing more strongly through the middle of the year. Accountancy and housebuilding again grew but a number of other areas were sluggish,"
US CPI incoming at 13:30 GMT
At 13:30 GMT the US CPI and Core CPI data sets might cause a 10-30 pip moves on various currency exchange rates that involve the US Dollar.Meanwhile, note that on Monday, at 12:00 GMT the weekly Economic Calendar Analysis stream will take place. It can be watched later by clicking on the links on the daily Trading Ideas publications.
GBP/USD short term review
During Thursday's trading session, the currency exchange rate traded along the 55-hour and the 100-hour simple moving averages. However, during Friday morning hours, the resistance levels retraced the rate to depreciate the British Pound against the US dollar to the 1.2710 mark.In regards to the near-term future, it is expected that the British Pound will continue recovering itself against the US Dollar to break the resistance levels. Most likely, the rate will end the trading session near the pattern line at the 1.2800 level.
On the other hand, during today's US CPI and Core CPI data releases at 13:30 GMT the rate could pass the support level of the monthly PP to trade at the 1.2660 level.
Hourly Chart
The previously described waiting mode is over. The comment provided by the Brexit funders to Reuters has provided the needed strength to push through the 1.2800 mark.
In general expect more such moves that can't be forecast. Meanwhile, watch closely each speaker, as all of them have an agenda. It might be even possible that the comment was provided in an effort to profit from the sudden jump that would occur during the publication of the news.
Dukascopy Analytics already published an article, which explained the basics of Brexit. We intend to publish an after-vote article at the end of the week starting with January 14.01. For more info feel free to write to [email protected]
Daily chart
A part of the traders profited and some opened long positions, as the fundamental event caused a breaking of technical resistance levels. It could have signalled to the long going traders to buy.
Meanwhile, trader set up pending orders in the 100-base point range were neutral on Friday.
That indicates that additional buying by the short term oriented retail traders and smaller institutions at the Swiss Foreign Exchange is unlikely.