- 53% of pending orders in the 100-pip range are to BUY the Pound
- 52% of traders are bearish on the Sterling (-4%)
- Daily high at 1.40
- Upcoming events: MPC Member Ramsden and FOMC Members Dudley, Mester and Williams to speak
The Sterling was seen weaker against the US Dollar after the UK GDP growth report came in on Thursday. The GBP/USD currency pair lost 13 base points, or 0.09%, to 1.3878 to continue fluctuating while after.
The UK Office for National Statistics said that the second estimate for Britain's GDP growth in the final quarter of 2017 reflected a short downward revision from the first estimate, falling to the 0.4% quarterly growth pace. However, business investment growth remained stand-still, expansion in business services and finance within the services sector was the largest contributor to the increase of the UK's GDP. In annual terms, the UK economy grew 1.7%, slightly lower than expected.
Day with speeches
Four speeches are scheduled for this session. The MPC Member David Ramsden is set to speak at 1200GMT, while the President of the Federal Bank of New York William Dudley, the President of the Federal Bank of Cleveland Loretta Master and the President of the Federal Bank of San Francisco John Williams at 1515GMT, 1830GMT and 2040GMT, respectively.
GBP/USD surrenders near 1.40
Despite a minor decline during the first part of Thursday's trading session, the Sterling gained momentum and surged 83 pips against its American counterpart within a couple of hours. This strong upside momentum was disrupted near the 1.3965 mark where the combined resistance of the 100– and 200-hour SMAs and the 32.20% Fibo restricted any further advances.
By Friday morning, the rate had remained between this cluster and the 55-hour SMA in a very narrow trading range. It is likely that bulls fail to overcome the 1.40 mark during this relatively calm session. A more possible direction, therefore, is southwards closer to the weekly S1 at 1.3843.
If no massive volatility is introduced in the market, this level is likely to hold strong, thus leaving the rate near 1.39 by Monday morning.
Hourly chart
The Sterling has failed to push higher within the previous days, thus suggesting that the bearish sentiment could guide the pair towards the 55-day SMA in the medium term. Daily technical indicators are likewise supportive of this scenario.
Daily Chart
The bearish market sentiment continues to prevail, as 52% of traders are holding short positions (-4%). Meanwhile, 52% of pending orders are to buy the pair.
The market sentiment of OANDA traders remains bearish with 54% short positions (-2%). Saxo Bank clients are likewise bearish with 58% short positions.
Spreads (avg, pip) / Trading volume / Volatility