- 57% of pending orders in the 100-pip range are to BUY
- SWFX market sentiment is 55% bearish (+2%)
- Daily low likely to be near 1.41
- Upcoming events: US Final GDP q/q, FOMC Member Bostic to speak
In case the prevailing channel up is to prevail, traders might see a fall down to the 1.41 area this week.
The Greenback weakened against the Euro, following the US CB consumer confidence report released on Tuesday. The EUR/USD currency pair gained five pips, or 0.04%, in the first five minutes after the release, to continue fluctuating in the 1.2407 area.
The Conference Board revealed weaker consumer confidence, but that was not enough to cause a significant move in the observed currency pair. The United States CB reporteda positive result of 127.7 points, still below expectations, following a downwardly revised data in the previous period. March's figure reflected the fewer amount of responses showing expectations for higher incomes, better business conditions and more available positions in the following six months.
Traders focused on US Final GDP
The main attention in this session is put on the US final gross domestic product for the fourth quarter of 2017. The data is set to be released at 1230GMT. Analysts forecast an expansion of 2.7% during the given period which is a 0.2% increase from the third quarter.
Meanwhile, one speech is likewise scheduled for today. The President of the Federal Reserve Bank of Atlanta Raphael Bostic is due to speak at the Atlanta Society of Finance and Investment Professionals luncheon at 1600GMT.
GBP/USD recovers after massive sell-off
Contrary to the slight period of consolidation which began mid-Monday, the GBP/USD exchange rate was shaken by a strong sell-off during the following session. The pair plunged 1.04% in six hours just to be followed by another surge towards the 1.42 area.Given that the Pound is once again located above the 55– and 100-hour SMAs, it seems that this currency could once again be set for a surge towards the 1.4313 mark—its highest position since the Brexit vote.
Thus, the pair is likely to edge higher during the following hours. The monthly and weekly R1s near 1.4260, however, might hinder or even halt the pair in the same manner as on Monday.
Meanwhile, the US is to release its final GDP figures at 1230GMT. In case of bearish pressure, 1.41 is unlikely to be breached.
Hourly chart
The Sterling has been appreciating gradually against the US Dollar since the beginning of March – the movement which has been guided by the 55-day SMA. It seems that the pair might still show some upside potential towards the 1.44 area this week.
Daily Chart
The SWFX market sentiment remains bearish with 55% short positions (+2%). Meanwhile, 53% of pending orders are still to buy the Sterling (+1%).
The number of short positions of OANDA traders has increased to 58% (+3%). Saxo Bank clients share the same percentage of short positions today.
Spreads (avg, pip) / Trading volume / Volatility