- 51% of pending orders in the 100-pip range are to BUY the Sterling
- SWFX market sentiment is 67% bullish (+3%)
- Upcoming fundamental events: BOE Governor Carney and FOMC Member Quarles to speak, BOE, Financial Stability Report, US (Core) Durable Goods Orders m/m
The strong resistance cluster located near 1.3250 could trigger bearish momentum.
The British Pound strengthened against the Greenback, following the UK Interest Rates data release on Thursday. The GBR/USD currency pair gained 54 pips, or 0.41%, to continue fluctuating in the 1.3200 area.
The Bank of England (BOE) released Interest Rates data that came out in a line with a forecast of 0.50% in May, and stayed unchanged from the previous period.
Jeavon Lolay of Lloyds Bank says: "The surprising switch by Bank of England chief economist Haldane to support an immediate rate hike puts August firmly on the table. There will be even more interest in what governor Carney says tonight at the annual Mansion House speech."
US CB Consumer Confidence
Wednesday's trading session will start with the BOE Governor Mark Carney holding a press conference about the Financial Stability Report at 0830GMT. The given report is released at the same time.
The US Census Bureau is set to publish the Durable Goods Orders and its core reading at 1230GMT. The market expects that the Core Durable Goods Orders rose by 0.5% in May, compared to a 0.9% increase during the preceding month. Meanwhile, the Federal Reserve Governor Randal Quarles is set to speak about financial regulation at the Utah Bankers Association Annual Convention at 1500GMT.
GBP/USD flash bearish signals
The Pound managed to breach its three-day range to the downside on Tuesday, thus forming a new short-term descending channel. This fall was very limited, as bears could not push the pair below the psychological 1.32 level. Meanwhile, an advance above 1.3240 was stopped by the 100– and 200-hour SMAs.The pair moving below all three SMAs should point to further fall, as the Pound is likely to lack the necessary strength to dash through this massive resistance cluster. This scenario is likewise supported by bearish technical indicators on 1H and 4H time-frames.
The nearest support is the weekly S1 at 1.3144, while the senior channel line is located nearby at 1.3190.
Hourly chart
By reviewing the daily chart of the GBP/USD pair it was discovered that there exists a descending channel pattern that has been in action since the middle of April.
The pair breached this medium-term channel earlier this week, thus pointing to a possible surge towards the 55- and 200-day SMAs located near 1.3650.
Daily Chart
The market sentiment of OANDA remains bullish, as 65% of its traders are holding long positions (-4%). Saxo Bank clients are likewise bullish with 60% long positions (-2%). However, it should be noted that institutional investors are gradually starting to abandon their bullish positions.
Spreads (avg, pip) / Trading volume / Volatility