- 63% of pending orders in the 100-pip range are to BUY
- 64% of traders are bullish on the Pound
- Strong resistance area is located circa 1.3180
- Upcoming events: US Core PCE Price Index m/m, US Personal Spending m/m
The Commerce Department revealed that the US gross domestic product marked a 3.0% yearly growth pace in the third quarter, fuelled by higher business investment, while consumer spending growth eased slightly as incomes were hurt by hurricanes.
Separate report showed that the US consumer sentiment remained at lofty levels over the course of October and was expected to improve further. Meanwhile, economists anticipate the Fed to raise rates one more time in December.
No significant market shakers
Only two sets of data are scheduled for this session both of which are of intermediate importance. The US Bureau of Economic Analysis is to release its Core CPE Price Index and Personal Spending for the month of September at 1230GMT.
GBP/USD approaches weekly PP at 1.3160
Friday's trading session was significant for two reasons. On the one hand, the cable managed to break through the lower trend-line of the senior ascending channel. On the other hand, it failed to slip below the 1.3090 mark, which correlates with location of the bottom boundary of an alleged larger, dominant ascending channel.
Such outcome allows assuming that this pattern will be strong enough to block another attempt of the pair to fall below the 1.3100 mark, following the general strengthening of the Dollar.
At the same time, rapid recovery of the Pounds seems unlikely as well due to presence of a combined resistance set up by the weekly PP, the 55-, 100- and 200-hour SMAs.
Hourly chart
On Friday, the Sterling was pressured by bears that managed to push the rate as low as the 1.3071 mark. Daily losses, however, were considerably smaller. The market sentiment has changed in this session, thus allowing the rate to test the 55-day SMA and the weekly PP circa 1.3160.
The southern barrier is set by the distant 100-day SMA at 1.3069. Given that the rate faces a significant resistance area on the hourly chart, as well, intraday technical signals might be more effective in determining possible points of reversal.
Daily chart
Market sentiment mixed
The bullish SWFX market sentiment has remained at the same level in this session, thus currently standing at 64%. In addition, 60% of pending orders are to buy the pair (+8%).
OANDA traders are bullish in this session with 56% of open positions are long on Monday (+1%). Meanwhile, Saxo Bank clients are still in favour of a fall; however, the number of short positions has increased to 64% (+3%).