- 66% of pending orders in the 100-pip range are to SELL
- 52% of open positions are to BUY
- Rate faces significant resistance circa 1.3380
- Upcoming events: Quiet day
Because of sudden news that came from Brussels on Friday, the Pound lost more than 100 points against the Dollar. Today the cable is expected to resume an upwards movement, which, however, is likely to be neutralized by the several technical indicators near the 1.3380.
A breakthrough in Brexit negotiations diminished the risk of a disordelry Britain's quit from the EU and is likely to encourage corporate and household confidence, the Bank of England stated. The Central Bank's policymakers voted to keep interest rates unchanged at 0.50%, in line with expectations, after raising them last month, as inflation growth reached its strongest level in almost six years, while unemployment rate remained very low.
Empty Monday
An economic calendar does not contain any events that are worth following today.
GBP/USD plunges amid Brexit news
Due to existence of a strong selling pressure in the area between 1.3440 and 1.3450 marks, the cable could not climb higher and was forced to make a rebound. However, as this turnaround matched with news coming from Brussels, the Pound lost more than 100-pips against the Dollar and ended the week at the psychological 1.3300 support level. Today the pair is expected to resume the upward movement, even though it is unlikely to exceed the 1.3380 mark, as this area is reliably secured by the weekly and monthly PP as well as the slipping 55-, 100- and 200-hour SMA. In other words, without another fundamental impulse the pair will be forced to retreat once again. In larger perspective it looks like the Friday's plunge led to transformation of a medium descending channel into the falling wedge formation.
Hourly chart
On daily chart the cable continues to decline in three different descending channels. Despite significant support set up at the 1.3300 level the downward movement is expected to continue.
Daily chart
The bullish market sentiment has not changed, as 52% of open positions are long (+0%).
In the meantime, 52% of pending orders are to buy the Sterling (+1%).
OANDA traders remain bearish, as 50% of open positions are short (-3%).
Saxo Bank clients share the same sentiment with 57% short positions (-3%).
Spreads (avg, pip) / Trading volume / Volatility
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