- 59.80% of pending orders in 100-pip range are to buy the pair
- 54% of traders are bullish on the Pound
- SWFX market sentiment is 68.50% bullish
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Upcoming Events: US ISM Manufacturing PMI
Wednesday's preliminary estimate of the UK's gross domestic product for the second quarter matched analysts' estimates, but signalled that its expansion has lost some momentum in relation to the previous year. This was reflected in an instant fall of the GDP/USD exchange rate, which was trading at 1.3026 just after the data were published.
The Office for National Statistics reported that Britain's GDP rose 0.3% in the second quarter of 2017 as anticipated, while the yearly growth slowed from 2% to 1.7% in the same period. The UK services sector, which makes up the largest part of the economy, remained as the main contributor to the growth, offsetting weakness in manufacturing and construction.
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US Manufacturing PMI in focus
Today is a quite important day in terms of macroeconomic data releases. In the early morning, the HIS Markit had announced the UK Manufacturing PMI, which soared from 54.2 to 55.1 and pushed the Pound by 31 basis point. Later this day at 14:00 GMT the ISM will publish information on the US Manufacturing PMI that is projected, in contrast, to slip from 57.8 to 56.4.
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GBP/USD starts day near 1.3200
Contrary to expectations, the currency exchange rate left a rising wedge formation in the northern direction straight through the weekly R1 at 1.3200. The reason behind such outcome is attributed to 54-pip surge in the middle of the day that matched with release of information of the US Pending Home Sales. It is difficult to project where the currency rate is going to move today because of announcement of the UK Manufacturing PMI at 8:30 GMT and then the US ISM Manufacturing PMI at 14:00. If the British and American data will justify forecasts, the currency rate might jump to the weekly R2 at 1.3264. In the opposite scenario, the fall should be delayed by the 20-hour SMA and, then fully stopped by the approaching 55- and 100-hour SMAs.
Hourly chart
Due to announcement of the UK Manufacturing PMI in the early morning, the British Pound has appreciated against the US Dollar by 31 pips and, thus, left the rising wedge formation in the upward direction. If this achievement sustains, the currency exchange rate will try to target the monthly R1 at 1.3357. In the opposite scenario it might slip back to the updated monthly PP at 1.3084.Daily chart
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Bullish sentiment still prevails
In the first day of August the number of open long positions has slightly decreased from 61% to 58%. Nevertheless, 54% of pending orders are to buy the Pound.
In contrast, traders at Saxo Bank are bearish on the pair, with 65% of traders holding short positions (+0%). Meanwhile, OANDA clients are similarly bearish on the pair, as 56% of all open positions are short.
Spreads (avg, pip) / Trading volume / Volatility