- The Swiss market is 57% bullish on the pair
- 68% of pending orders in the 100-pip range are set to SELL
- UK Average Earnings Index on Tuesday at 08:30 GMT
On Monday, the GBP/USD was positioned to surge almost 100 base points, as it faced no technical resistance. Meanwhile, the morning data release of the UK GDP and Manufacturing Production did not cause a significant impact on the Pound's strength.
The Institute for Supply Management ISM Non-Manufacturing PMI data better-than-expected of 58.5 index compared with forecasted 56.8 index. The data release seems to be positive for the US economy.
Tony Nieves, the chair of the ISM's Non-Manufacturing Business Survey Committee commented: "This was a nice rebound from July, which was a 12-month running low," "It was nice to see both business activity and new orders over 60, coupled with the [ISM] manufacturing side having a record month in August. That is also a leading indicator for non-manufacturing."
UK Average Earning on Tuesday in focus
During the first half of the week there will be no notable data releases occurring in the United States. On Wednesday, the US PPI data release will occur at 12:30 GMT. The event will be covered by Dukascopy Analytics on the bank's webinar platform.
Meanwhile, note that macroeconomic data release traders will have something to do until Wednesday. On Tuesday, at 08:30 GMT the United Kingdom's Average Earnings Index will be published. Join the Dukascopy webinar platform at 08:20 GMT to see live analysis and cover of the event.
GBP/USD short term review
In regards the near future, most likely the rate will surge upwards due to a strong support of the simple moving averages. The rate will pass the 61.80% Fibo to move closer to the weekly R1 at the 1.3040 mark, which is almost 100 base points away from the rate.On the other hand, the British pound may use the resistance of the 61.80% Fibo to retrace back to the 1.29 mark.
Hourly Chart
With the recent bounce upwards a possible long term pattern in the borders of the most dominant descending pattern has been drawn. Although, it is a rather weak drawing and might not hold.
Meanwhile, note the strong resistance provided on the daily chart by the weekly and monthly pivot point levels near 1.2920.
Daily chart
The Swiss trader sentiment remains largely bullish. Namely, traders of the Swiss Foreign Exchange were long in 57% of all of their open positions.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, are set to sell the pair in 52% of all cases. This fact indicates that the retail traders are undecided in regards to the pair's short term future.
Meanwhile, OANDA traders remain largely bullish, as 64% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 54% long on the GBP/USD pair. The long term sentiments both have decreased by three percent since Friday.
Spreads (avg, pip) / Trading volume / Volatility