- 55% of pending orders in the 100-pip range are to BUY
- 55% of traders are bullish on the Pound (-3%)
- Significant resistance is located circa 1.3170
- Upcoming events: US Unemployment Claims
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.
US Unemployment Claims
The most significant fundamental event of this session is the US Unemployment Claims at 1330GMT. Meanwhile, some minor US data are to be released today, namely, the Final Wholesale Inventories for September, Natural Gas Storage and 30-y Bond Auction at 1500GMT, 1530GMT and 1801GMT, respectively.
GBP/USD sinks amid Priti Patel scandal
During the previous trading session the cable was in perfect situation to make a rebound from combined support level formed by the 55-hour SMA, the weekly PP as well as the 38.2% retracement level and make a breakout from the ascending triangle pattern.
However, another political scandal in the British government led to rapid sell-off of the Pound. As a result, the exchange rate got in a tricky situation. On the one hand, further road to the south is blocked by the 100-day SMA and the lower line of a large symmetrical triangle.
This disposition supports intention of bulls to return the pair back to the pre-fall 1.3175 level. However, in order to achieve this goal, the rate needs to pass through combined resistance set up by the above retracement level, the weekly PP and the 55-hour SMA.
Hourly chart
Given the pair's movement during the past several weeks, it is apparent that the Pound is quite reluctant to push for the long-term channel and has remained near the bottom boundary of the junior channel. Thus, it is expected that his pattern could be breached within the following two weeks.
In this session, however, the Pound might be hindered by the 100-hour SMA located at 1.3104. The upside is guarded by the weekly PP and the 38.2% Fibo circa 1.3150.
Daily chart
Bulls strengthen their positions
The bullish SWFX market sentiment continues to weaken in this session, as it is currently standing at 55% (-3%). Meanwhile, 51% of pending orders are now to buy the US Dollar (+1%).
OANDA traders are bullish on Thursday, as 57% of open positions are long (+2%). Meanwhile, the bearish sentiment of Saxo Bank clients remains at 55% for the third consecutive session.