- 53% of pending orders in the 100-pip range are to SELL
- 61% of traders are bullish on the Pound (-3%)
- Strong resistance area is located circa 1.3180
- Upcoming events: FOMC Member Dudley to speak
The Labour department revealed that the US job growth sped up in October, while the yearly wage growth as well as participation rate fell in the reported period, clouding the outlook of the job market.
The report showed that the country's economy added 261K jobs in the reported period, missing forecasts for a 310K increase. The weak pay growth is likely to hamper inflation to reach 2% target.
Quiet session
The only fundamental event that should be mentioned in regard to GBP/USD in this session is the speech by the President of Federal Reserve Bank of New York Willian Dudley who is to discuss lessons from the financial crisis at the Economic Club of New York at 1710GMT.
GBP/USD stuck at monthly S1 at 1.3073
Initially, the Pound tried to restore some and even used a momentum provided by release of better than expected UK Services PMI to climb to the 1.3107 mark. However, the subsequent release of positive American data neutralized this attempt and returned the pair back to the monthly S1 at 1.3073.
Unless traders receive some clear signal the currency rate might continue moving in such indecisive manner for some while. Nevertheless, a pressure from the 100-day SMA on a daily chart is likely to push the pair down even further.
Although an attempt to surge to the 55-hour SMA is possible, but eventually it is still expected to slip to support area near the 1.3030 mark.
Hourly chart
After the massive fall on Thursday, GBP/USD ended the following session with slight gains and thus reversed from the bottom channel boundary circa 1.3050. This week will demonstrates if the pair manages to remain in the green area and initiate a new wave up.
On Monday, the pair opened slightly above the monthly S1 and seems to be tended north. However, it is yet to be seen if the weekly PP and the 38.2% Fibonacci retracement at 1.3146 are reached.
Daily chart
Bulls strengthen their positions
The bullish SWFX market sentiment has decreased by four percentage points in this session, thus currently standing at 61%. In addition, 52% of pending orders are to buy the pair (-4%).
OANDA traders are bullish in this session, as 60% of open positions are long on Monday (+1%). Meanwhile, Saxo Bank clients are still in favour of a fall; however, the number of short positions has decreased to 52% (-4%).