- 52% of pending orders in the 100-pip range are to BUY
- 55% of traders are bearish on the Sterling (+3%)
- Important support cluster lies circa 1.33
- Upcoming events: US Flash Manufacturing PMI, US Flash Services PMI
The Sterling was seen slightly stronger against the US Dollar, after the UK GDP growth report came in on Thursday. The GBP/USD currency pair added 17 base points or 0.13% to 1.3308 to continue fluctuating between the 1.3290 and 1.3315 marks.
The Office for National Statistics said that the second estimate for the Britain's GDP growth confirmed a 0.4% quarterly growth pace in the three months period to September. Consumer spending was the largest contributor to the increase, despite relatively solid inflation growth since the Pound's weakening after the Brexit vote. However, some questions arise that the country's reliance on consumer demand would not last with higher possibility of further weakening in household's spending.
Minor US fundamentals
This trading session is expected to be calm in terms of fundamentals, as only two minor events from the US are scheduled for mid-Friday, namely, the Flash Manufacturing PMI and Flash Services PMI for the current month at 1445GMT.
GBP/USD breaks below 1.33
In line with expectations, the cable continued to gradually moving to the bottom after making a rebound from the upper edge of a currently active ascending channel that was additionally secured by resistance line at the 1.3338 mark.
In the first hours of this trading session the pair managed to bypass the weekly R1 at 1.3300 and the 55-hour SMA at 1.3293, which suggests that the rate is likely to reach the opposite side of the channel by the end of the day. The only obstacle that might alter this scenario and push the pair back to the 1.3290 level is the rising 100-hour SMA.
In the upcoming days, the currency rate most probably is going to continue heading to the bottom, trying to return to an area near the 1.3230 mark.
Hourly chart
The Sterling closed Thursday's session with slight losses against the US Dollar. However, the pair managed to remain in a range between the weekly R1 and R2. In case no unexpected events shake the market, this range is likely to hold on Friday.
Daily chart
Bears strengthen their positions
The SWFX market sentiment remains bearish this Friday, as 55% of open positions are short (+3%). Meanwhile, 56% of pending orders are now to buy the Pound.
OANDA traders are bearish on the Sterling, as 51% of open positions are short in this session (-2%). In addition, Saxo Bank clients share the same sentiment, as 67% of their positions remain short for the third consecutive session.