- 53% of pending orders in the 100-pip range are to BUY
- 58% of traders are bullish on the Pound (-1%)
- Nearest resistance is located circa 1.3175
- Upcoming events: UK Preliminary GDP q/q, US Core Durable Goods Orders m/m, US Durable Goods Orders m/m, US New Home Sales
The preliminary PMI report for the US services and manufacturing sectors showed better-than-expected readings of 55.9 and 54.5, respectively.
The expansion indicators bolstered optimism over the US economy, though the bullish release failed to encourage the Greenback. Preliminary data was likely to confirm projections for the Federal Reserve to announce the interest rate hike at the December meeting.
Important data to be released today
Wednesday's trading sessions will start with the British Preliminary GDP for the second quarter of 2017 to be released at 0830GMT. Meanwhile, the United States is to publish its Core Durable Goods Orders and Durable Goods Orders for September at 1230GMT, as well as the number of New Home Sales at 1400GMT.
GBP/USD awaits GDP release in symmetrical triangle
Due to growing fears about hard Brexit possibility the Sterling depreciated against the Dollar by 104 basis points. From technical perspective this plunge matched with a rebound from the upper trend-line of a dominant descending channel towards the bottom edge of a smaller ascending channel.
Until release of data on the UK quarterly GDP the cable is likely to consolidate near the 38.2% Fibonacci retracement level located at the 1.3145 mark. In case of positive news the pair might surge straight to the 1.3170 level that will be secured by the 100- and 55-hour SMA.
In the opposite scenario, there is a high chance that bears will succeed to push the pair from the symmetrical triangle pattern. In that case the Pound most probably is going to depreciate against the Dollar in the foreseeable future.
Hourly chart
Despite the strong support of the 38.2% Fibo and the 55-day SMA circa 1.3150, the Sterling managed to push below and close slightly below this area on Tuesday. The same bearish momentum prevailed early in this session but on a notably smaller scale.
Due to fundamentals that are scheduled in this session, the pair might overcome the 1.3150 mark once again or, conversely, approach the weekly S1 at 1.3080.
Daily chart
Bullish sentiment deteriorates
The bullish SWFX market sentiment continues to weaken in this session, thus currently standing at 58% (-1%). In addition, 53% of pending orders are to buy the pair (-4%).
OANDA traders are bullish in this session with 51% of open positions being both long (-1%). Meanwhile, Saxo Bank clients are still in favour of a fall, as the number of short positions continues to be 58% (unchanged from Tuesday).