- 52% of pending orders in the 100-pip range are to BUY
- 61% of traders are bullish on the Pound (-4%)
- Nearest support is located circa 1.3180
- Upcoming events: UK CBI Industrial Order Expectations
The National Association of Realtors reported on Friday that the US existing home sales gained 0.7% to a seasonally adjusted yearly rate of 5.39M in September.
The increase was sustained by dissipation of the effects of Hurricanes Harvey and Irma, though an enduring dearth of available properties kept weighing on overall activity. Moreover, the weak affordability is likely to keep prices high, upsetting considerable buyers' interest throughout the US.
No major events scheduled for Monday
It seems that Monday's trading session is going be rather uneventful due to lack of data releases. The only event that is included in today's economic calendar is the UK CBI Industrial Order Expectations for the month of October at 1000GMT. This release, however, is unlikely to affect the market in any way.
GBP/USD returns to 1.3200
Despite a sharp fall after release of worse than expected data about the UK retail sales, the cable managed to bounce off from the bottom trend-line of a large ascending channel and by Monday morning restore lost positions returning back to the 1.32 level.
However, the pair is not expected to climb higher this day, as the further road to the north is obstructed by a combination of the 200-hour SMA and the upper edge of a dominant descending channel, which has already managed to neutralize the surge couple of times.
But even in the case of a breakthrough in weekly perspective the Pound is likely to lose value against the Dollar because of release of information on the UK Preliminary GDP, which might appear to be below the 0.3% growth rate.
Hourly chart
GBP/USD failed to move past a significant resistance formed by the 38.2% Fibonacci retracement and the 55-day SMA circa 1.3150 for the fourth consecutive trading session. As a result, it seems that the Pound is tended slightly northward early on Monday.
The Sterling is testing the weekly PP and approaching the 20-day SMA at 1.3197 and 1.3450, respectively. Given the overall direction of the pair, it is likely that traders might see it sliding lower within this week.
Daily chart
Market sentiment is mixed
The bullish SWFX market sentiment has slightly decreased on Monday, thus currently standing at 61% (-4%). In addition, 58% of pending orders are to buy the pair (-1%).
OANDA traders are bullish in this session with 52% of open positions being both long (+2%). Meanwhile, Saxo Bank clients are still in favour of a fall, as the number of short positions continues to be 63% (+2%).