- 53% of pending orders in the 100-pip range are to SELL
- 58% of traders are bullish on the Pound
- Significant resistance is located circa 1.3165
- Empty economic calendar
The JOLTS report showed that demand for workers in the US remained solid, with 6.1M job openings registered in September.
The job opening rate, as well as pace of hiring were unchanged at 4% and 3.6%, respectively. Despite the recent hurricanes' fallout, levels were steady, indicating the resilient labour market. However, nearly 1.7M people were laid off or fired in September, compared with 1.5M a year ago.
No events for GBP/USD pair
Today's economic calendar includes only minor events that could affect the GBP/USD exchange rate, namely, the US Crude Oil Inventories or the US 10-y Bond Auction at 1530GMT and 1801GMT, respectively.
GBP/USD forms ascending triangle pattern
During the previous trading session the currency rate expectedly returned back to the 1.3110 mark, which represents location of the 23.6% Fibonacci retracement level. As this barrier was additionally backed up by the 55-hour SMAs, it made a rebound.
However, the fact that the cable failed to climb above the 50% retracement level at 1.3180 two times in a row as well existence of a slope that lies along rising 55-hour SMA indicates on existence of a minor ascending triangle pattern.
If this assumption is true, then the pair is likely to make a breakout to the top already by the end of the day due to existence of combined support barrier formed by above 55- and 100-hour SMAs, the 38.2% retracement level and the weekly PP at 1.3150.
Hourly chart
Given the pair's movement during the past several weeks, it is apparent that the Pound is quite reluctant to push for the long-term channel and has remained near the bottom boundary of the junior channel. Thus, it is expected that his pattern could be breached within the following two weeks, and the rate should consequently push lower down to the monthly S1 at 1.3074.
Daily chart
Bulls strengthen their positions
The bullish SWFX market sentiment continues to weaken in this session, as it is currently standing at 58% (-1%). Meanwhile, the number of pending orders is at equilibrium.
OANDA traders are bullish on Wednesday, as 55% of open positions are long (+1%). Meanwhile, the bearish sentiment of Saxo Bank clients remains at 55% (unchanged from Tuesday).