- 69% of pending orders in 100-pip range are to buy the pair
- 54% of traders are bullish on the Pound
- SWFX market sentiment is 61.60% bullish
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Upcoming Events: US Chicago PMI and Pending Home Sales
Wednesday's preliminary estimate of the UK's gross domestic product for the second quarter matched analysts' estimates, but signalled that its expansion has lost some momentum in relation to the previous year. This was reflected in an instant fall of the GDP/USD exchange rate, which was trading at 1.3026 just after the data were published.
The Office for National Statistics reported that Britain's GDP rose 0.3% in the second quarter of 2017 as anticipated, while the yearly growth slowed from 2% to 1.7% in the same period. The UK services sector, which makes up the largest part of the economy, remained as the main contributor to the growth, offsetting weakness in manufacturing and construction.
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Day of silence
First day of the week, traditionally, proceeds quietly for the major currency pairs. The only news releases, to which traders might pay attention to, are the Chicago PMI at 13:45 GMT and the US Pending Home Sales at 14:00 GMT. However, none of them are expected to have any significant impact on the given currency rate.
Read More: Fundamental Analysis
GPB/USD tends to reach monthly R1
The currency exchange rate continues to gradually climb upstairs in a rising wedge pattern. More specifically, the first week of August the pair started in a limbo between the upper trend-line from the top and a combination of the 20- and 55-hour SMAs as well as the weekly PP from the bottom. In the upcoming hours this barrier should become additionally strengthened by the approaching 100-hour SMA. For this reason, the rate is expected not to fall below the 1.3095 level. Since there are also no important data releases today, the pair should continue to move towards the pattern's northern boundary. William's fractals suggest that the surge might be stopped already near the 1.3160 mark, which, in turn, would lead to formation of a short-term ascending triangle.
Hourly chart
The currency pair continues to climb towards the upper trend-line of a rising wedge. At the moment, it is trying to bypass a strong resistance barrier set up by the 38.20% Fibonacci retracement level at 1.3146. Given that it practically coincides with pattern's upper boundary and the updated weekly R1, a rebound most likely is going to follow.Daily chart
Read More: Technical Analysis/
Bullish sentiment prevails
In the last day of July the number of open long positions has slightly decreased from 62% to 61%. Nevertheless, 54% of pending orders are to buy the Pound.
In contrast, traders at Saxo Bank are bearish on the pair, with 65% of traders holding short positions (+0%). Meanwhile, OANDA clients are similarly bearish on the pair, as 58% of all open positions are short.
Spreads (avg, pip) / Trading volume / Volatility