- 54% of pending orders in the 100-pip range are to BUY
- 59 of traders are bullish on the Pound (-2%)
- Nearest resistance is located circa 1.3220
- Upcoming events: US Flash Manufacturing PMI, US Flash Services PMI, Richmond Manufacturing Index
The National Association of Realtors reported on Friday that the US existing home sales gained 0.7% to a seasonally adjusted yearly rate of 5.39M in September.
The increase was sustained by dissipation of the effects of Hurricanes Harvey and Irma, though an enduring dearth of available properties kept weighing on overall activity. Moreover, the weak affordability is likely to keep prices high, upsetting considerable buyers' interest throughout the US.
Minor releases on Tuesday
Tuesday's trading session is likely to be calm in terms of fundamental events, as only three minor data releases from the United States are scheduled for today, namely, the Flash Manufacturing PMI, Flash Services PMI at 1345GMT and Richmond Manufacturing Index at 1400GMT.
GBP/USD back below 1.32 mark
On Tuesday morning the Pound had already lost the previously gained ground against the US Dollar, as the currency exchange rate traded below the 1.32 level.
The reason for that is quite unclear, as the pair had already passed the last resistance level above the 1.3250 mark during the early hours, when the rate suddenly began to fall. However, after passing various support levels the pair's decline was stopped by the combined support of the 55 and 100-hour SMAs.
In regards to the future outlook, it seems that the surge is set to continue, as the pair has broken the resistance of the long term channel down pattern.
Hourly chart
Following a reversal from the 55-day SMA circa 1.3170, the rate managed to push up to the weekly PP circa 1.32. The Sterling still remains between the 55- and 20-day SMA at 1.3155 and 1.3235, respectively. In general, the rate is expected to remain in the given range today, as well.
Daily chart
Market sentiment is mixed
The bullish SWFX market sentiment has slightly decreased on Tuesday, thus currently standing at 59% (-2%). In addition, 57% of pending orders are to buy the pair (-1%).
OANDA traders are bullish in this session with 52% of open positions being both long (unchanged from Monday). Meanwhile, Saxo Bank clients are still in favour of a fall, as the number of short positions continues to be 58% (-5%).