- 52% of pending orders in the 100-pip range are to BUY
- 53% of open positions are bullish (-1%)
- Significant resistance located circa 1.34
- Upcoming events: UK Current Account, UK Final GDP q/q, US Core Durable Goods Orders m/m, US Core CPE Price Index m/m, US Durable Goods Orders m/m, US Personal Spending m/m, US New Home Sales, US Revised UoM Consumer Sentiment
The US economy expanded at its strongest pace in two years in the Q3, fuelled by solid business spending. The Commerce Department stated that the country's gross domestic product rose at a 3.2% yearly rate in the Q3, missing expectations for a 3.3% growth.
Moreover, the US Congress approved tax cuts are set to encourage economic growth, though the risk of overheating is likely to occur with fiscal stimulus coming simultaneously with reaching the level of full employment.
Busy session
The economic calendar for Friday includes three sets of fundamentals. The day will start with the British Current Account and Final GDP for the third quarter of 2017 to be released at 0930GMT.
Meanwhile, the US is to publish its monthly Core Durable Goods, Core CPE Price Index, Durable Goods Orders and Personal Spending at 1330GMT, as well as monthly New Home Sales and Revised Consumer Sentiment by the University of Michigan at 1500GMT.
GBP/USD pressured by SMAs
The Pound weakened slightly against the US Dollar on Thursday. This fall, however, was brief, as the pair had managed to return to the 1.3340 mark by this morning. Along the way, the combined resistance of the 55-, 100– and 200-hour SMAs was surpassed with little hindrance.
The Pound is approaching a short-term trend-line located circa 1.34. It is likely that this line together with the aforementioned support pressure the rate from both sides in this session.
Nevertheless, fundamentals scheduled for this session could introduce some changes to this assumption. Apart from the trend-line, the nearest resistance is set by the weekly R1 at 1.3430, while the southern barrier is likewise reinforced by the weekly and monthly PPs.
Hourly chart
As apparent on the daily time-frame, the Pound has failed to move past the 1.3390 mark for the fourth consecutive session. Meanwhile, the combined support of the monthly and weekly PPs has constrained the pair from moving below 1.3370.
In case fundamentals do not shake the market significantly, this session might not bring massive changes to the pair's positioning.
Daily chart
The bullish market sentiment has decreased by one percentage point on Friday, as 53% of open positions are long. In addition, 52% of pending orders are to buy the Sterling (-1%).
OANDA traders remain bearish, as 53% of open positions are still short (+1%). Saxo Bank clients share the same sentiment with 57% short positions (+3%).
Spreads (avg, pip) / Trading volume / Volatility