- Retail sector is 68% bullish on the pair
- 68% of pending orders in the 100-pip range are set to sell
- UK CPI on Wednesday morning
On Tuesday morning it could be seen that the GPB/USD pair is doing a rebound after finding support in a pivot point. Meanwhile, the data release that occurred this morning at 08:30 GMT did not manage to change the direction of the pair.
The Greenback strenghened against the British Pound, following the UK GDP and other data set release. The GBP/USD currency pair lost 10 pips, or 0.08%. After the significant drop of the main pair, it started to recover itself, but few minutes later, the main pair has dropped even more to continuing flactuaction in the same area.
Office for National Statistics released Gross Domestic Product data that came lower-than-expected of 0.1% with the forecasted 0.2%. This data set is relatively new, because of that, there is no historical data for it. Although, the UK GDP data release was strong enough to cancel out the positive effect of more than one other data releases. Namely, Manufacturing Production, Preliminary GDP and others.
Rob Kent-Smith, ONS head of national accounts says "The economy picked up a little in the second quarter with both retail sales and construction helped by the good weather and rebounding from the effects of the snow earlier in the year. However, manufacturing continued to fall back from its high point at the end of last year and underlying growth remained modest by historical standards."
Next release on Wednesday
The Tuesday's morning data release caused a bounce upwards of 34 base points. The full review will be available in the second part of the day's trading in the Fundamental Analysis section.
Meanwhile, next target for United Kingdom's data releases will be the UK CPI data release, which will be published at 08:30 GMT on Wednesday. The data release will be covered by Dukascopy Analytics, and the event will start at 08:20 GMT.
GBP/USD with no changes
The Sterling has remained stable against the US Dollar for the second consecutive session. During this time, the pair was trading in a narrow range between the 1.28 mark and the monthly S2 at 1.2745.Even though technical indicators are already recovering, the Sterling has failed to follow this trend, mainly due to the 55-hour SMA blocking any gains. However, it seems that the rate should be ready to surpass this resistance, breach the junior channel and target the breached senior pattern and the weekly PP at 1.2850 today.
Given that bears were unable to push the Sterling lower since mid-Friday, it is unlikely that a fall occurs. In case the bearish scenario does prevail, this decline should not be greater than the weekly S1 near 1.2650.
Hourly Chart
By looking at the daily chart, one can notice that the currency exchange rate is just taking a pause from its long term decline. Most likely it is set to continue its decline, as before.
However, the decline is set to pause time from time, as the currency exchange rate's decline is highly likely going to find short term support in the various monthly and weekly pivot point levels.
Daily chart
SWFX traders remain bullish today on the GBP/USD pair, as 68% of open positions were LONG during the morning hours.
However, additional long positions are unlikely going to be open. Retail traders of the Swiss Foreign Exchange have set up 59% of all of their pending trade orders to sell.
Meanwhile, OANDA traders remain largely bullish, as 70% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 61% long on the GBP/USD pair.
It can be deducted from all of the sentiment information that the markets for now are expecting a long term surge. Although, retail traders of Dukascopy at the same time are also taking advantage of a smaller scale rebound.
Spreads (avg, pip) / Trading volume / Volatility