- 55% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 58% bullish (-4%)
- Upcoming fundamental events: US PPI m/m, US Core PPI m/m
The Pound fails to overcome the 100-hour SMA once again.
The Greenback weakened against the Eurozone's single currency, following US Non-Farm Employment Change data release on Friday. The EUR/USD currency pair gained 23 pips, or 0.19%, to continue fluctuating in the 1.1971 area.
The Bureau of Labor Statistics released three data simultaneously from which two of them: Non-Farm Employment Change data and Average Hourly Earnings data came out lower-than-expected of 164K and 0.1% respectively. However, Unemployment Rate data came out better-than-expected of 3.9% instead of the 4.0% forecast, it was not enough to stop the currency to go upwards.
US Producer Price Index
The only significant data releases in this session are the US Producer Price Index and its core reading published at 1230GMT. Analysts expect that the PPI strengthened by 0.2% in April, compared to a 0.3% increase during the preceding month.
GBP/USD Pound stable against US Dollar
If looking from an intraday perspective, the Pound remained stable against the US Dollar on Tuesday. The pair did introduce some volatility mid-session, but it ended soon, thus leaving the rate near its Tuesday-morning level.The 100-hour SMA is once again providing strong support for the Pound today. In case this line is surpassed, the most likely scenario would see the pair accelerating and trying to reach the 200-hour SMA at 1.3660.
On the other hand, a failure to do so is expected to result in a decline. Even though the nearest support is the distant weekly S1 at 1.3417, the Sterling might not fall this low, given its recent attempts surpass the aforementioned SMAs. Technical indicators still remain bearish, while the pair's potential during the following days is to the upside.
Hourly chart
Strong downside risks have been pushing the GBP/USD exchange rate considerably lower for the second consecutive week. As a result, the pair had reached the 200-day SMA near 1.3530 by Thursday morning and remained there for the following trading session.
Technical indicators on the daily time-frame are located in the overbought territory. Thus, the aforementioned moving average might mark a reversal point from which the Pound tries to move towards the 1.40 mark this week.
Daily Chart
The bullish SWFX market sentiment has slightly decreased to 58% of open positions being long today (-4%). Meanwhile, 65% of pending orders remain to sell the Pound (+7%).
The market sentiment of OANDA traders is strongly bullish, as 60% of them are holding long positions (-4%). Saxo Bank clients share the same sentiment with 56% long positions (+1).
Spreads (avg, pip) / Trading volume / Volatility