- 62% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 64% bullish
- Quiet day in terms of fundamentals
Downside potential is still apparent until 1.34.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
Quiet day
The only fundamental event in this session is a speech by the President of the Federal Reserve Bank of Atlanta Raphael Bostic who is to discuss the economic outlook and price-level targeting at 1530GMT.
GBP/USD reaches new 2018 low
The Sterling continues to weaken against the US Dollar for the second consecutive session. As a result, the pair breached an important support level, which is also the 2018 low, at 1.3462. On Monday morning, the Pound was trading near the weekly S1 and the bottom boundary of a three-week channel at 1.34.It is expected that the pair still edges lower down to this psychological mark during the first part of the day. However, the general direction should nevertheless be northwards this week. The nearest significant resistance is the 55-, 100– and 200-hour SMAs and the weekly PP circa 1.3515.
Given that no important data releases are scheduled for today, it is unlikely that the 1.3400/1.3515 range is breached in this session.
Hourly chart
Following several days of fluctuating near the 200-day SMA circa 1.3530, the Sterling eventually breached this line and fell down to the 1.3415 mark on Monday morning.
It is expected that a medium-term surge could start this week. In order to confirm this scenario, the aforementioned long-term SMA needs to be surpassed.
Daily Chart
The bullish SWFX market sentiment has remained unchanged with 64% of open positions being long today. Meanwhile, 61% of pending orders remain to sell the Pound (-1%).
The market sentiment of OANDA traders is strongly bullish, as 62% of them are holding long positions (-1%). Saxo Bank clients share the same sentiment with 60% long positions (+2%).
Spreads (avg, pip) / Trading volume / Volatility