- SWFX market sentiment is 66% bullish
- 53% of pending orders in the 100-pip range are to BUY
- Busy Friday for US data releases
The GBP/USD currency pair declines after BoE increased interest rate.
The Census Bureau released the monthly Durable Goods Orders that came out lower-than-expected of 1.0% compare with forecasted 3.0%, but better than previous period.
"A senior investment manager Patrick O'Donnell, from Aberdeen Standard Investments, said: "It looks like the European side is trying to acquiesce to Trump's demands. They've got more to lose if tariffs look to be placed on autos, for example. So over multi-month horizon, we'll probably see lower tariffs globally".
Non-Farm Employment Change
The week will end with the US Non-Farm Employment Change data released at 12:30 GMT. However, this will be part of host of webinar.
The Dukascopy research team will also cover the US ISM Non-Manufacturing PMI scheduled at 2:00 GMT. All the data releases will be covered on bank live webinar platform.
GBP/USD pressured by the 200-hour SMA
Although the Bank of England hiked their interest rate, which caused a jump of almost 50 base points in the GBP/USD, the rate retreated after encountering resistance. Namely, the 200-hour SMA and the weekly PP managed to hold their ground and force the rate into a retreat.The retreat broke the junior descending channel pattern, and by the middle of Friday's trading session the weekly S2 at 1.2990 was already reached. If the support level gets passed, the currency rate would reach down to the monthly S1, which on Friday was located at the 1.2935 level.
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 below 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 also bullish today on the GBP/USD pair, as 66% of open positions were LONG during the morning hours. Furthermore, traders set up orders are along bullish during the morning hours, as 53% of trader set up orders are to BUY the exchange rate.
Meanwhile, the market sentiments of OANDA traders are bullish on the GBP/USD pair as 71% of open positions are LONG. In addition, Saxo bank traders are 63% bullish in regards to this exchange rate.
Spreads (avg, pip) / Trading volume / Volatility