- 55% of pending orders in the 100-pip range are to BUY
- 55% of open positions are bullish (-1%)
- Notable support located circa 1.3380
- Upcoming events: CB Consumer Confidence and Pending Home Sales m/m
The Federal Reserve of Richmond released its survey, showing that the manufacturing growth was slower over the month of December.
The Manufacturing Index dropped to 20 from 30 in the reported month, being an additional sign for the Fed to keep interest rate hike plans in 2018. Meanwhile, markets remained cautious ahead of the New Year, with the US Dollar taking less attractive stand, which could be sustained until the Fed's new President Powell takes the position.
Consumer confidence
The US Conference Board Inc. is to release its Consumer Confidence at 1500GMT. The US Pending Home Sales for the month of November will be published at the same time.
GBP/USD still fluctuates in triangle
Yesterday's trading session did bring any notable changes, as expected. The Sterling is continuing to fluctuate against the Dollar in a two-week long symmetrical triangle whose upper boundary simultaneously represents the slope of a larger falling wedge formation.
Theoretically, a release of information on the American consumers' sentiment could trigger a breakout especially if data appears worse than expected. However, this event traditionally does cause high volatility, which means that the cable might stay within the pattern until the end of the day.
In larger perspective, there is a need to take into account that market sentiment is rather bullish and larger part of pending orders are also set to buy.
Hourly chart
The Pound closed Tuesday's trading session with slight gains. Despite moving below the monthly and weekly PPs circa 1.3370, the pair failed to remain below this area that had provided a strong support barrier last week.
Upside risks took over the market this morning, as the pair did manage to approach the psychological 1.34 mark. The nearest resistance is the distant weekly R1 1.3419. Given that no other resistance levels are apparent on the hourly chart, the pair could fulfill its potential and finally surpass the 1.34 mark.
Daily chart
The bullish market sentiment has decreased slightly on Wednesday, as 55% of open positions are long (-1%). In addition, 52% of pending orders are to buy the Sterling (-7%).
OANDA traders have turned bullish, as 51% of open positions are now long. Saxo Bank clients are still bearish with 56% short positions (-2%).
Spreads (avg, pip) / Trading volume / Volatility