- 57% of pending orders in the 100-pip range are to BUY the Pound
- 52% of traders are bearish on the Sterling (-2%)
- Daily high around 1.4050
- Empty economic calendar
Initially, the British Pound rose against the US Dollar despite lower-than-expected UK retail sales data, growing 11 base points to the 1.4118 mark. However, the GBP/USD pair went towards anticipated direction remaining in the short-term bearish trend.
Britain's shop sales appreciated less than anticipated in January, confirming the cautiousness of consumer spending in the reported period. The Office for National Statistics revealed that the volume of retail sales increased only 0.1%, following the revised drop of 1.4% in the prior month. However, the increase was brought by declines in all leading sectors with an exeption of non-food stores, which was associated with "getting fit" New Year's resolutions increasing the sales.
Calm session
No significant fundamentals are scheduled for this session; thus, the market is likely to be quiet.
GBP/USD weakens on Tuesday morning
The British Sterling was confined by the 55– and 200-hour SMAs on Monday. It did, however, breach a notable support cluster set by the 100-hour SMA and the weekly and monthly PPs circa 1.40 along the way.
As apparent on the chart, the pair is bounded by two significant barriers on each side; thus, a breakout is likely to determine its subsequent direction during the day. In terms of technicals, the rate is flashing strong oversold signals that could be an early indication of a soon period of appreciation. This scenario is supported by the fact that the lower boundary of a two-week ascending channel that could put upward pressure on the pair is likewise located nearby.
In case no events shake the market, the pair could maintain its trading range between the 55– and 200-hour SMAs in this session.
Hourly chart
The Sterling has failed to push higher within the previous days, thus suggesting that the bearish sentiment could guide the pair towards the 55-day SMA in the medium term. Daily technical indicators are likewise supportive of this scenario.
Daily Chart
The bearish market sentiment continues to prevail, as 52% of traders are holding short positions (-2%). Meanwhile, 54% of pending orders are to buy the pair (-5%).
The market sentiment of OANDA traders remains bearish with 57% short positions (+2%). Saxo Bank clients are likewise bearish with 57% short positions (+3%).
Spreads (avg, pip) / Trading volume / Volatility