- 54% of pending orders in the 100-pip range are to sell the pair
- 57% of traders are bullish on the Pound
- Important resistance level is located near 1.3208
- No fundamental events in this session
The GBP/USD currency pair showed modest reaction on the UK economic releases on Friday, as the reports revealed mixed results for July. However, a small impact from British macroeconomic data as well as the weakening US Dollar were not interfering the Sterling to extend gains by the mid-Friday session, where after post-data drop of 0.04% the British Pound rose to the highest level in five weeks to start trading in the 1.318-1.321 area.
The Office for National Statistics stated that the UK manufacturing output increased 0.5% over the month of July, showing the strongest gain this year. Coming along with weaker construction output, data suggested the UK economy to expand at a modest pace in the Q3.
No fundamental events
No economic events that could affect the GBP/USD currency pair are scheduled for this trading session.
GBP/USD tries to reaches monthly R1 at 1.3208
Due to positive numbers that were revealed during a release on the UK Manufacturing Production, the Pound caught an upside momentum that helped it to reach the monthly R1 at 1.1320. However, this barrier appeared to be strong enough to prevent the further surge. Given that the southern direction is secured by the 55-hour SMA and the updated weekly PP at 1.3110 as well as the approaching 100- and 200-hour SMAs, an extensive drop is not expected to follow. In contrast, these indicators will motivate the pair to try break to the top. Except for the above monthly R1 the next closest resistance barrier is located only at 1.3310. Yet, these projections can be altered, as the Sterling is expected to be quite heavily affected by a number of data releases this week.
Hourly chart
The strong momentum that guided the pair last week has allayed substantially. The weekly R1 at 1.3208 provided an unbreakable resistance on Friday and it seems that the same scenario might repeat in this session, as well. Meanwhile, the nearest resistance is set by the 38.2% Fibonacci retracement at 1.3146. Taking into account the lack of fundamental events today, it is likely that the Pound remains in the 1.3202/1.3146 range for the whole session.
Daily chart
Bullish sentiment deteriorates
SWFX market sentiment has remained at a relatively stable position on Monday, as the number of long positions is 57% (-1%). Meanwhile, 65% of pending orders are to buy the Pound.
On the other hand, OANDA traders are increasingly bearish on the pair, as 58% of open positions are short (+5%). Traders at Saxo Bank are likewise bearish with 66% short positions (+5%).