- 58% of pending orders in the 100-pip range are to BUY the Sterling
- SWFX market sentiment is 60% bullish
- Upcoming fundamental events: US Building Permits and Housing Starts
GBP/USD reached new 2018 low early on Tuesday.
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.
US Building Permits
The US Census Bureau is to release the monthly Building Permits and Housing Starts at 1230GMT.It is expected that the number of new residential building permits declined to 1.35M in May, compared to 1.36M during the preceding month.
GBP/USD remains at 2018 low
GBP/USD continues to trade sideways for the second consecutive session. The pair even diminished its trading range on Monday, as it was restricted by the seven-month low of 1.3230 and the 55-hour SMA.It is expected that volatility increases today due to several fundamental releases; thus, one of these two barriers will be breached. Given that technical indicators are located in the oversold territory and that the rate has failed to breach this many-month low for two days, this move is more likely to occur to the upside. This would allow the Sterling to approach the 1.3350 level which is strengthened by the 55– and 100-period (4H) and 200-hour SMAs.
In case bears prevail, the Pound should not fall below the channel line at 1.3150.
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 has weakened today and stands at 60% bullish positions (-6%). Meanwhile, 51% of pending orders are to sell the Pound.
The market sentiment of OANDA is strongly bullish, as 66% of its traders are holding long positions (+1%). Saxo Bank clients are likewise bullish with 60% long positions (-2%).
Spreads (avg, pip) / Trading volume / Volatility