- 56% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 64% bullish
- Upcoming fundamental events: Philly Fed Manufacturing Index, US Unemployment Claims, MPC Member Haldane to speak
The Sterling remains near all three moving averages.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
Relatively calm day
This trading session should be relatively calm from fundamental point of view, as only two data sets and one speech of intermediate importance are scheduled for today. The US is to publish the Philly Fed Manufacturing Index and the weekly Unemployment Claims at 1230GMT, while the BOE Chief Economist Andy Haldane is to deliver closing remarks at the Economic Statistics Centre of Excellence Conference at 1600GMT.
Meanwhile, note that at 1200 GMT Dukascopy Analysts are hosting a Swing Trading introduction webinar. During the webinar anyone can participate and learn, how to swing trade by using the information and widgets provided by Dukascopy. Moreover, the chat will be available for asking questions.
GBP/USD moves above major resistance
GBP/USD stood at a standstill on Wednesday, as no significant price changes occurred throughout the day. Instead, the pair was fluctuating in a range between 1.3460 and 1.3520. The former is a major support level which has worked effectively at halting a fall below it during the last five months.This lack of direction shifted late in the session when the Pound dashed through the strong resistance of the 55-, 100– and 200-hour SMAs near 1.3530. It is likely that this cluster provides a good stepping stone for further appreciation.
Technical indicators demonstrate that there is still some upside potential, so the rate is expected to move past the two-week descending channel and towards the senior pattern circa 1.3650. In terms of the daily low, the Sterling is unlikely to breach the 1.3450 mark.
Hourly chart
Strong downside risks have been pushing the GBP/USD exchange rate considerably lower for the third consecutive week. As a result, the pair reached the 200-day SMA near 1.3530 last week and has since remained near this line.
Technical indicators on the daily time-frame are located in the overbought territory. Even though the given moving average was breached this week, the Pound has nevertheless remained near this line. Thus, it is still expected that the 50.0% Fibonacci retracement marks a reversal point from which the Sterling moves towards 1.40 during the following weeks.
Daily Chart
The bullish SWFX market sentiment has remained unchanged with 64% of open positions being long today. Meanwhile, 59% of pending orders remain to sell the Pound (-3%).
The market sentiment of OANDA traders is strongly bullish, as 60% of them are holding long positions (-1%). Saxo Bank clients share the same sentiment with 53% long positions (-4%).
Spreads (avg, pip) / Trading volume / Volatility