- 62% of pending orders in the 100-pip range are to SELL the Pound
- 55% of traders are bearish on the pair (-6%)
- Upcoming fundamentals: FOMC Members Brainard, Quarles and Mester and MPC Member Cunliffe to speak, US Unemployment Claims, Philly Fed Manufacturing Index
The Pound consolidates after yesterday's plunge.
The British Pound weakened against the Greenback, following the UK Consumer Price Index data release on Wednesday. The GBP/USD currency pair lost 80 pips, or 0.56%, to continue fluctuating in the 1.4184 area.
The Office for National Statistics released Consumer Price Index data that came out lower-than-expected. The UK inflation rate came out to be 2.5% for the period of March, which was short of 0.2% from the economists forecast, which coincided together with 2.7% inflation rate over the month of February.
British Retail Sales
Wednesday's trading session will start with the British Retail Sales for the previous month at 0830GMT.
Three FOMC members are likewise to speak today, namely, the Federal Reserve Governors Lael Brainard and Randal Quarles and the President of the Federal Bank of Cleveland Loretta Mester at 1200GMT, 1330GMT and 2245GMT, respectively. In addition, the Federal Reserve Bank of Philadelphia is to release its manufacturing index at 1230GMT.
GBP/USD consolidates after plunge
The Sterling was trading along the 55-hour SMA early on Wednesday. This lack of sentiment was disrupted massively at 0830GMT when the UK released rather disappointing inflation data. The pair plunged 89 pips in the wake of this release down to the 1.42 mark and had remained near this level by Thursday morning.It is likely that the Sterling tries to recover some of its losses and in this session, as suggested by bullish technical indicators. However, in case of sluggish Retail Sales, the pair could fall even lower, as no restrictions until the weekly S1 at 1.4111 are apparent on the chart.
This data release might likewise have an opposite effect and thus push the pair past the 55– and 100-hour SMAs and the monthly R1 located at 1.4274. In case of weaker bullish sentiment, this area should hold firm.
Hourly chart
Following a test of the 55-hour SMA early in April, the Sterling accelerates substantially against the US Dollar. Technical indicators demonstrate that there is still some slight upside potential. Thus, the pair might still edge higher during the following session, setting the 1.44 area as a possible near-term target.
In case bears prevail this week, the pair should be pushed towards a trend-line at 1.41.
Daily Chart
The SWFX market sentiment has weakened by one percentage point on Wednesday, as 55% of open positions are short (-6%). Meanwhile, 52% of pending orders are once again to sell the Sterling.
OANDA traders remain bearish on the Pound with 59% of their open positions being short (-4%). Saxo Bank is likewise bearish with 64% of its clients holding short positions (+1%).
Spreads (avg, pip) / Trading volume / Volatility