- 52% of pending orders in the 100-pip range are to SELL
- Overall market sentiment is at equilibrium
- Strong support near 1.3860
- Upcoming events: US ADP Non-Farm Employment Change
The US economy kept expanding in February, data showed on Monday.
The ISM revealed that its non-manufacturing PMI stepped lower to 59.5 points in the reported month, compared to 59.9 in January. Growth for the 103rd consecutive month, with 62.8% in February, was reflected by the non-manufacturing business activity index, showing 3% increase from the prior month.
ADP Non-Farm Employment Change
The only noteworthy fundamental event in this session is the ADP Non-Farm Employment Change in February to be released at 1315GMT.
GBP/USD likely tended north
Following a rather quite morning on Tuesday, the Sterling took advantage of the weaker US Dollar later in the day and eventually dashed through the strong resistance of the monthly and weekly PPs and the 200-hour SMA circa 1.3870. Further advance did not follow, as the pair entered a minor period of consolidation.Despite technical indicators flashing bearish signals, it is likely that the breached resistance succeeds at supporting the rate near 1.3860. This level also coincides with the 55-hour SMA and the prevailing one-week tend-line.
By and large, it is expected that the Sterling pushes higher within the following trading sessions until a downward-sloping trend-line and the 38.20% Fibo retracement is reached near 1.3950.
Hourly chart
The Sterling is trading in a 14-month channel against the US Dollar. In line with this pattern, the pair should continue its movement lower down to its lower boundary and the 100-day SMA circa 1.36.
In terms of this week, some short-term appreciation might still be possible.
Daily Chart
The market sentiment of SWFX traders stands at equilibrium for the third consecutive session. Meanwhile, 51% of pending orders are still to sell the Sterling (-1%).
The market sentiment of OANDA traders is bearish, as 52% of open positions are short (+1%). Meanwhile, open positions of Saxo Bank clients are at equilibrium.
Spreads (avg, pip) / Trading volume / Volatility