- SWFX market sentiment is 66% bullish
- 60% of pending orders in the 100-pip range are to SELL
- Britain Manufacturing PMI
The GBP/USD currency exchange rate is facing a steep resistance cluster near 1.3130 during the European trading session on Wednesday.
The Bureau of Economic Analysis released Gross Domestic Product data that came lower-than-expected of 4.1%, compared with the forecasted 4.2% but better than previous periods.
The US President Donald Trump said: "Somebody actually predicted today 5.3 [percent growth]. I don't think that's going to happen…if it has a 4 in front of it, we're happy. If it has like a 3, but it's a 3.8, 3.9, 3.7, we're OK. These are unthinkable numbers. If I would have used these numbers during the campaign, the fake news back there would've said he's exaggerating."
Busy fundamental events
There will be several fundamental events today that could influence the GBP/USD currency pair. Namely, Britain Manufacturing PMI , US ADP Non-Farm Employment Change, US Crude Oil Inventories, US FOMC Statement and US Federal Funds Rate.
This data releases will be covered by the Dukascopy research team on bank live webinar platform.
GBP/USD fell below 1.3130
Some bullish momentum was apparent in the market on Tuesday morning. This appreciation failed to exceed 1.3160, as the combined resistance of the 100– and 200-period (4H) SMAs weakened the strength of bulls. As a result, the Pound provided the third confirmation of a short-term trend-line near 1.3160. The rate was pushed lower past the 55-, 100– and 200-hour SMAs later in the day.Technical signals are mixed today. However, the rate moving below this strong support cluster does suggest further decline in this session. A possible downside target is the weekly S1 at 1.3040.
In terms of resistance, it is unlikely that the weekly R1, the 50.00% Fibo and the 200-period SMAs near 1.32 are breached. The FOMC rate statement might introduce high volatility in the evening.
Hourly Chart
When taking a look at the daily time frame of the GBP/USD pair, it was discovered that exchange rate has been moving lower since May when the channel was formed. There were no changes to the overall position for this currency pair.
However, the Japanese candlestick opens above the weekly pivot point at 1.3130 today; this could suggest that the overall position on the one-hour time frame might change within this session.
Daily chart
SWFX traders are bullish today on the GBP/USD pair, as 66% of open positions were LONG during the morning hours. However, traders set up orders are SHORT during the morning hours, as 60% of trader set up orders are to SELL the exchange rate.
Meanwhile, the market sentiments of OANDA traders are LONG on the GBP/USD pair as 64% of open positions are bullish. In addition, Saxo bank traders are 58% LONG in regards to this exchange rate.
Spreads (avg, pip) / Trading volume / Volatility