- 52% of pending orders in the 100-pip range are to BUY the Sterling (-2%)
- SWFX market sentiment is 66% bullish
- UK data went out in the morning hours
The Pound's expected surge in the borders of a dominant descending channel pattern has not occurred due to the prevailing strength of another pattern. Namely, the pattern's resistance line has managed to hold its ground.
The British Pound strengthened against the Greenback, following the UK Manufacturing PMI data release on Monday at 08:30 AM. The GBR/USD currency pair gained seven pips, or 0.05%, to continue fluctuating in the 1.3155 area.
The Markit released the monthly UK Purchasing Managers' Index data that came out better-than-expected of 54.4, and stayed unchanged from the previous period.
Rob Dobson stands: "The slowdown in new order growth since earlier in the year has also left manufacturers increasingly reliant on backlogs of work and inventory building to maintain higher output."
A UK release almost each morning
This week is the first of the month. That means that almost each day there will be an UK event that is worth covering. For the first third days of the week the Purchasing Managers Indexes of the United Kingdom will be released each morning at 08:30 GMT. The data releases will be covered on the live webinar platform, and the cover will begin each day at 08:20 GMT.
Meanwhile, note that on Thursday the Governor of the Bank of England will give a public speech at 10:00 GMT. The event might influence the strength of the British pound.
The end of the week will bring another, although minor, data release in the UK. The Halifax HPI will be released at 07:30 GMT.
GBP/USD bounces off resistance
As many other US Dollar involving currency pairs, the GBP/USD has bounced off a resistance line. However, if one zooms out the chart, it can be observed that the currency exchange rate has bounced off a medium term resistance line.Meanwhile, it is set to surge in the borders of a large scale descending channel pattern. The surge should occur, as the rate forms a new junior and medium term ascending pattern. Although, instead of that the rate faces various resistance lines, pivot points and simple moving averages.
Due to these factors combined, the GBP/USD is a rate, whose medium term movements are almost impossible to forecast.
Hourly chart
By reviewing the daily chart of the GBP/USD pair it was discovered that there exists a descending channel pattern that has been in action since the middle of April.
The recent rebound provided a chance to more precisely draw the upper trend line of the descending channel pattern.
Daily Chart
The bullish market sentiment of OANDA has decreased, as 67% of its traders are holding long positions (-3%).
Spreads (avg, pip) / Trading volume / Volatility