- SWFX market sentiment remain 68% bullish today
- 59% of pending orders in the 100-pip range are to BUY
- UK GDP, US CPI and Core CPI
The GBP/USD broke a significant long-term dominant descending channel during the morning hours of today's session.
The Energy Information Administration released the US Crude Inventories data that came out higher-than-expected. Instead of the expected negative 2.8 million, the data came out only 1.4 million negative.
The Australia and New Zealand Banking Group announced on Wednesday: "Crude oil prices rose as the reality of US sanctions on Iran weighed on sentiment."
UK GDP, US CPI and Core CPI
On Friday there are some major macroeconomic data releases that could change the position for this currency pair. Namely, UK GDP, US CPI and the Core CPI.
Meanwhile, the data releases will be covered by the Dukascopy research team on the bank's live webinar at 12:20 GMT.
GBP/USD broke senior channel
The Sterling has been unable to pick up momentum against the US Dollar, thus in total losing 2.75% since the beginning of August.On Thursday, GBP/USD was stable during the first part of the day limited by the weekly S2 at 1.2854. This was followed by a change in sentiment mid-session when the rate breached the senior channel and fell down to the psychological 1.28 mark—the pair's lowest position since August 2017.
The rate is clearly oversold which should in turn increase upside risks in the nearest time. If the 1.28 level does not hold the rate, it is likely that the current decline ends only near the monthly S2 and the weekly S3 at 1.2735. From the upside, the Sterling remains restricted by the 55– and 100-hour SMAs near 1.29.
Hourly Chart
The GBP/USD currency exchange rate continued to decline in value for the last three months. This fall 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 remain bullish today on the GBP/USD pair, as 68% of open positions were LONG during the morning hours. Moreover, traders set up orders are also bullish during the morning hours, as 59% of trader set up orders are to buy the pair.
Meanwhile, the market sentiments of OANDA traders are bullish on the GBP/USD pair as 71% of open positions are LONG. In addition, Saxo bank traders are 58% bullish in regards to this exchange rate.
Spreads (avg, pip) / Trading volume / Volatility