- 56% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 62% bullish (+2%)
- Upcoming fundamental events: US President Trump to speak
The 100-hour SMA could pressure the rate lower today.
The Greenback weakened against the Eurozone's single currency, following US Non-Farm Employment Change data release on Friday. The EUR/USD currency pair gained 23 pips, or 0.19%, to continue fluctuating in the 1.1971 area.
The Bureau of Labor Statistics released three data simultaneously from which two of them: Non-Farm Employment Change data and Average Hourly Earnings data came out lower-than-expected of 164K and 0.1% respectively. However, Unemployment Rate data came out better-than-expected of 3.9% instead of the 4.0% forecast, it was not enough to stop the currency to go upwards.
Two speeches today
The main fundamental event today is a speech by the US President Donald Trump who is to announce his decision on the Iran nuclear deal at 1800GMT.
GBP/USD expected to surge if resistance is surpassed
GBP/USD continues to trade sideways for the fifth consecutive session. It seems that the pair has been trying to edge higher during this time, especially considering its failure to plunge after a breakout of the long-term channel last week. However, this expected appreciation is restricted by the combined resistance of the 55– and 100-hour SMA near 1.3560. The weekly PP is likewise located nearby.It is likely that the Pound tries to push higher during the first part of the day. Even if an upside breakout does not occur today, a surge should follow during the following sessions.
Today's trading range is likely to be wide due to fundamentals. Bullish gains should be capped near the 200-hour SMA at 1.37, while the nearest support is provided by the distant weekly S1 at 1.3417.
Hourly chart
Strong downside risks have been pushing the GBP/USD exchange rate considerably lower for the second consecutive week. As a result, the pair had reached the 200-day SMA near 1.3530 by Thursday morning and remained there for the following trading session.
Technical indicators on the daily time-frame are located in the overbought territory. Thus, the aforementioned moving average might mark a reversal point from which the Pound tries to move towards the 1.40 mark this week.
Daily Chart
The SWFX market sentiment is bullish, as 62% of open positions are long today (+1%). Meanwhile, 57% of pending orders remain to sell the Pound (+2%).
The market sentiment of OANDA traders is strongly bullish, as 64% of them are holding long positions (+5%). Saxo Bank clients share the same sentiment with 55% long positions (unchanged from Monday).
Spreads (avg, pip) / Trading volume / Volatility