- 58% of pending orders in a 100-pip range are to buy the pair
- 69% of traders are bullish on the Pound
- Significant support is located near the 1.30 mark
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No fundamental events scheduled for this session
Positive Britain's economic reports for June resulted in a solid jump in the GBP/USD exchange rate right after the data came in. Following the release, the Sterling rose versus the US Dollar by 16 base points to touch the 1.2981 level.
The Office for National Statistics reported that the country's manufacturing output grew at the same pace as previously, while industrial production advanced unexpectedly over the month of June. The survey's results suggested that the manufacturing growth is likely to gain momentum in the third quarter, while exports would grow at a faster-than-estimated pace. Moreover, experts revealed that the economic expansion is likely to hold up sufficient growth pace in the second half of 2017 rather than decelerate.
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Empty calendar on Monday
The new trading week starts with an empty economic calendar for both the US and the UK. This may result in a relatively calm trading, as traders get ready for the UK CPI and US (Core) Retail Sales tomorrow, among other less significant releases.
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GBP/USD recovers from three-week low
GBP/USD halted at the 1.2960 mark on Friday, thus forming a triple bottom. The rate consequently went through the 55– and 100-hour SMAs, the latter of which has since provided strong support near the 1.30 mark. The Pound is trading sideways this morning, fluctuating around the newly-established weekly PP at 1.3001. It is likely that a support cluster formed by the aforementioned SMAs provides a strong barrier. By and large, no significant leaps either direction are expected today, resulting in a rather flat movement. The Pound, however, may still edge higher against the Greenback and approach the 1.3040 area.
Hourly chart
The Pound was driven by bulls on Friday. This level, however, was not sustainable, as momentum has reversed to the downside. It is expected that the rate fluctuates near the 1.30 mark in this session, as traders might not push aggressively in either direction. The rate remains stranded between the 20-day SMA and the monthly S1 at 1.3064 and 1.2944, respectively.Daily chart
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Sentiment becomes neutral
The bullish trader sentiment has not changed on Monday, with 69% of open positions being long (+4%). Meanwhile, the number of pending orders is almost at equilibrium, currently standing at 52% to buy the Pound (unchanged from Friday).
Meanwhile, traders at Saxo Bank are bearish on the pair, with 64% of traders holding short positions (0%). The same bearish sentiment is shared by OANDA where 56% of open positions are likewise short (-1%).
Spreads (avg, pip) / Trading volume / Volatility