- 56% of pending orders in the 100-pip range are to BUY the Sterling
- SWFX market sentiment is 66% bullish (+2%)
- Upcoming fundamental events: US Empire State Manufacturing Index, Capacity Utilisation Rate, Industrial Production and Preliminary UoM Consumer Sentiment
GBP/USD is likely to push towards the 1.3350 area today.
The British Pound weakened against the Greenback, following the UK CPI data release on Wednesday. The GBP/USD currency pair lost six pips, or 0.04%, to continue fluctuating in the 1.3319 area.
The Office for National Statistics released Consumer Price Index data that came out in line with a forecast of 2.4% in May, staying unchanged from the previous period.
"Partially offsetting downward effects came from price changes for games, domestic electricity, food and non-alcoholic beverages, and furniture and furnishings," said a representative from the Office for National Statistics.
Minor US fundamentals
Only data of medium importance are released today. The Empire State Manufacturing Index is published at 1230GMT, while the US Capacity Utilisation Rate and Industrial Production - at 1315GMT. The Preliminary Consumer Sentiment by the University of Michigan comes out at 1400GMT.
GBP/USD weakens 1.60% since mid-Thursday
The Pound surpassing the 55-, 100– and 200-hour SMAs on Thursday morning signaled to a possible surge during the given session. This assumption, however, was abandoned when the rate reached the 200-period (4H) SMA at he 1.2450. This was followed by a massive 1.60% plunge down to the weekly S2 at 1.3215 at the time of this analysis.It is likely that bears still push the Sterling lower within the following hours until the psychological 1.32 level is reached. Technical indicators are located at historic lows; therefore, some upside potential is apparent today.
The most probable daily high should be all the three SMAs and the weekly PP circa 1.3360. The 55– and 100-period moving averages are likewise located in this territory.
Hourly chart
The Sterling has plunged 7.28% against the US Dollar since mid-April. Despite edging higher last week, bears managed to regain dominance in the market and push the rate down to 1.3255 this morning.
The pair is expected to strengthen next week, setting the 200-day SMA and the monthly R1 at 1.3650 as a mid-July target.
Daily Chart
The SWFX market sentiment is stronger today and stands at 66% bullish positions (+2%). Likewise, 51% of pending orders are to buy the Pound (-3%).
The market sentiment of OANDA is strongly bullish, as 70% of its traders are holding long positions (+5%). Saxo Bank clients are likewise bullish with 63% long positions (+4%).
Spreads (avg, pip) / Trading volume / Volatility