- 63% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 66% bullish
- Upcoming fundamental events: UK Net Lending to Individuals m/m, US Core PCE Price Index m/m, US Unemployment Claims, Chicago PMI, FOMC Members Bostic and Brainard to speak
The Pound continues to edge higher in this session.
The Bureau of Economic Analysis released Preliminary Gross Domestic Product data that came out lower-than-expected of 2.2%, compared to the 2.5% in the previous period.
"The revision to headline GDP growth was small, as were most of the revisions to GDP components. The standouts were weaker inventory investment, weaker residential investment and stronger business investment," said Chris Low of FTN Financial Group.
No major fundamentals today
The economic calendar for this session includes several fundamental releases of medium importance. The Bank of England is set to publish the British Net Lending to Individuals for April at 0830GMT.
Meanwhile, the United States will release the Core PCE Price Index and the weekly Unemployment Claims at 1230GMT. The Chicago PMI is published at 1345GMT.
The President of the Federal Reserve Bank of Atlanta Raphael Bostic is due to speak at 1645GMT, while the Fed Governor Lael Brainard – at 1700GMT.
GBP/USD moves above two-week resistance
Slight upward momentum was apparent for the GBP/USD exchange rate on Wednesday. The pair was hindered slightly by the 55-hour SMA, but this line together with the upper channel boundary were eventually breached to the upside.The Pound is still showing some upside potential today, especially given that the strong two-week resistance set by the aforementioned SMA was breached. Gains today should be capped near the 1.3360 mark, as traders may luck the necessary bullish momentum to breach the 200-hour and 200-period (4H) SMAs located near this level.
In line with this scenario, the pair would be supported by the 55-hour moving average. In case this line is breached to the downside, the daily low should be located at the weekly S1 at 1.3232.
Hourly chart
The Sterling has plunged 7.28% against the US Dollar since mid-April. Despite lingering near the 200-day SMA for a couple of days, downside risks prevailed and pushed the rate as low as the 1.33 mark early on Monday.
Technical indicators are located at historic lows. Thus, a recovery should occur in the nearest time. The nearest support is set by the monthly S2 at 1.3290.
Daily Chart
The bullish SWFX market sentiment is strongly bullish with 66% of open positions being long today. Meanwhile, 55% of pending orders remain to sell the Pound (-2%).
The market sentiment of OANDA traders is increasingly bullish, as 67% of them are holding long positions (+3%). Saxo Bank clients are likewise bullish with 61% long positions (-2%).
Spreads (avg, pip) / Trading volume / Volatility