- SWFX market sentiment is 64% bullish
- 50% of pending orders in the 100-pip range are to NEUTRAL
- No major fundamental events
The GBP/USD currency pair tested a support cluster formed by the combination of the weekly and the monthly PPs near the 1.2934 mark.
The US Federal Reserve announcement Interest Rates that came in line with expectation of <2.00% and the actual rate of <2.00% .
James McCann, senior global economist at Aberdeen Standard Investments says: The Fed "has already attracted the ire of the president for raising rates. This political interference is clearly unhelpful but may return as September approaches. I can't see Trump's tweets making [Fed Chairman Jerome] Powell change his course but it will be a test of his mettle to navigate the minefield of questions he'll inevitably get."
Minor macroeconomic releases
No important macroeconomic data releases are scheduled for today.
GBP/USD encounters support cluster
The Pound was pressured lower against the US Dollar early on Monday. This decline was limited, as the strong support of the monthly and weekly S1s at 1.2930 stopped any attempts to push the rate significantly lower. The pair subsequently remained trading in a narrow range above this cluster and remained there on Tuesday morning, as well.Technical indicators flash bearish signals, suggesting that this fall should continue today. However, it is rather unlikely that significant bearish pressure is put on the pair, especially if no important data releases are scheduled for today. In addition, the 61.80% Fibonacci retracement and a senior channel line are located nearby to support the Sterling.
If the 55-hour SMA is breached, the next target is the weekly PP and the 100-hour SMA.
Hourly Chart
The GBP/USD currency exchange rate has continued to depreciate in value for the last three months. This decline occurred when the pair broke a long-term ascending channel on April 27.
Furthermore, the Japanese candlestick opens above a support cluster set by the combination of the weekly and the monthly pivot points near the 1.29 mark. This could suggest that an upside movement on the smaller time frame is apparent during the following trading sessions.
Daily chart
SWFX traders are also bullish today on the GBP/USD pair, as 64% of open positions were LONG during the morning hours. However, traders set up orders are neutral during the morning hours, as 50% of trader set up orders are Long and other 50% short.
Meanwhile, the market sentiments of OANDA traders are bullish on the GBP/USD pair as 68% of open positions are LONG. In addition, Saxo bank traders are 62% bullish in regards to this exchange rate.
Spreads (avg, pip) / Trading volume / Volatility