- 54% of pending orders in the 100-pip range are to BUY
- 56% of traders are bullish on the Pound (+1%)
- Bank Holiday in the US
- Upcoming events: UK Manufacturing Production m/m, UK Goods Trade Balance, US Preliminary UoM Consumer Sentiment
The JOLTS report showed that demand for workers in the US remained solid, with 6.1M job openings registered in September.
The job opening rate, as well as pace of hiring were unchanged at 4% and 3.6%, respectively. Despite the recent hurricanes' fallout, levels were steady, indicating the resilient labour market. However, nearly 1.7M people were laid off or fired in September, compared with 1.5M a year ago.
UK Manufacturing Production
Two sets of fundamentals are to be released by the UK at 0930GMT, namely, the British Manufacturing Production and Goods Trade Balance for the month of September. Meanwhile, banks in the US are closed in this session in observance of Veterans Day.
However, the University of Michigan is to publish its Preliminary Consume Sentiment at 1500GMT. UK Manufacturing Production m/m, UK Goods Trade Balance, US Preliminary UoM Consumer Sentiment.
GBP/USD struggles to bypass 200-hour SMA
As it was expected, a combined resistance barrier formed by the weekly PP and the 38.2% Fibonacci retracement level managed to constrain the cable near the 1.3150 level. Unless the Pound receives a proper impulse from some fundamental even, there is a little chance that it will manage to bypass the 200-hour SMA.
But even in the best -case scenario the pair is unlikely to break above another resistance area this time protected by the 50% Fibonacci retracement level at 1.3180. If the Sterling starts to depreciate the initial fall is expected to be stopped by the 55- and 100-hour SMAs.
However, once the pair manages to bypass them, the plunge might continue up until the 1.3100 mark located near the 23.6% retracement level.
Hourly chart
As already predicted, GBP/USD was stopped by the strong resistance of the weekly PP and the 38.2% Fibo circa 1.3146 on Thursday. The pair's current direction is tended southwards; however, in case of solid British manufacturing data, this level might be breached to the upside. Thus, the nearest resistance would be the distant 55-day SMA at 1.3220.
Daily chart
Bulls strengthen their positions
The bullish SWFX market sentiment has strengthened by one percentage point on Friday, as it is currently standing at 56% (+1%). Meanwhile, 51% of pending orders are to buy the US Dollar (unchanged from Thursday).
OANDA traders are bullish in this session, as 54% of open positions are long (-3%). Meanwhile, the bearish sentiment of Saxo Bank clients has fallen to 53% (-2%).