- 52% of pending orders in the 100-pip range are to SELL the Pound
- Market sentiment is at equilibrium
- The Sterling bounded between 55- and 100-hour SMAs
- Upcoming events: UK Services PMI, US ISM Non-Manufacturing PMI
The dominant support was met exactly as expected. The currency pair rebounded against it. However, the situation has become rather complicated on Friday morning.
The Sterling rose against the US Dollar ahead the report on the UK manufacturing sector activity. Stronger-than-anticipated data for February drove the GBP/USD pair's exchange rate up by six base points, or 0.05%, to reach the 1.3759 level right after the release.
Britain's manufacturing sector continued to lose its strength last month; in fact, it was its lowest growth in eight months. Despite the fact that the number of orders had grown, output increased more slowly.
Markit/CIPS reported that the UK Manufacturing PMI fell to 55.2 in the reported month, the second-lowest level since June 2016 Brexit vote, but still an inch above the 55.0 long-term average.
British PMI
Two sets of noteworthy fundamentals are to be released in this session, namely the British Services PMI and the ISM Non-Manufacturing PMI at 0930GMT and 1500GMT, respectively.
GBP/USD still indecisive
The market has not introduced notable changes to the Pound's price level against the Greenback during the previous trading session, as the pair remained fluctuating in a narrow 1.3772/1.3810 range. The only notable event was an upside breakout of the 55–hour SMA. Being pressured by the 100-hour moving average from above, the Pound failed to accelerate and was thus located near the 1.38 mark on Monday morning.Two sets of fundamentals are scheduled for this session that could introduce some upside volatility towards the 1.3850 mark. Even if this upward movement is not significant today, the prevailing patterns do suggest that the Sterling could be ready to regain its lost positions in the nearest time.
A possible trading area for today is between 1.3750 and 1.3865.
Hourly chart
The daily chart's ascending channel was broken. The breaking of the pattern's support occurred due to the pressure created by the new large scale pattern. The new pattern is a simple descending channel, which is set to guide the pair until April.
However, there is additional information to be gained by examining the daily chart. Namely, the 55- and 100-day simple moving averages are set to provide support to the Pound against the Buck in the upcoming trading weeks.
Daily Chart
The market sentiment of SWFX traders stands at equilibrium today, compared to 52% short positions in the previous session. Meanwhile, 53% of pending orders are set to sell the Sterling.
The market sentiment of OANDA traders is likewise neutral for the second consecutive session. In the meantime, Saxo Bank clients are less bearish with 52% short positions.
Spreads (avg, pip) / Trading volume / Volatility