- 57% of pending orders in the 100-pip range are to SELL
- 64% of traders are bullish on the Pound (+4%)
- Important resistance area is located circa 1.3190
- Upcoming events: US Advance GDP q/q, US Advance GDP Price Index q/q, US Revised UoM Consumer Sentiment
The National Association of Realtors revealed that there was no change in the number of pending home sales in September.
However, the August's figure was revised down, putting the yearly rate to 3.5% in the observed period. The report showed that the US housing market continued suffering from weaker sales due to tight inventories, while builders cited labour and land shortages as a restraint on construction. Activity is expected to fall further the lack of available properties.
US Advance GDP
The economic calendar for this trading session includes three fundamental events from the United States the most important of which is the US Advance Gross Domestic Product for the third quarter of 2017 published at 1230GMT. Advance GDP Price Index for the given period is published at the same time. Meanwhile, the University of Michigan is to publish its Revised Consumer Sentiment at 1400GMT.
GBP/USD returns to Wednesday minimum
Following a report that the key Brexit draft law will be debated in parliament in the middle of November, the Pound dropped against the Dollar. This news as well as prolongation of the quantitative easing program announced by the Mario Draghi gave an excellent opportunity to return the cable to the 1.3130 level, from which it started a massive surge this Wednesday.
Despite such high volatility the lower trend-line of a dominant ascending channel is expected to block any further attempts of the rate to sneak to the bottom at least until release of the US Advance GDP later this day.
However, another round of rapid surge is not expected either, as path to the north is reliably secured by a combination of the 55-, 100- and 200-hour SMAs together with the weekly PP at 1.3197.
Hourly chart
After plunging on Thursday, the Pound continues this downside momentum and thus approaches the lower boundary of the medium-term ascending channel located circa 1.3070. However, in order to reach the given mark, the rate faces the combined support of the weekly S1, the 100-day SMA and the lower Bollinger Band in the 1.3080/60 area.
Meanwhile, the northern side is guarded by the 55 and 20-day SMAs, the weekly PP and the 38.2% Fibo.
Daily chart
Market sentiment mixed
The bullish SWFX market sentiment has strengthened in this session, thus currently standing at 64% (+4%). In addition, 52% of pending orders are to buy the pair (-7%).
OANDA traders are bullish in this session with 55% of open positions being both long (+2%). Meanwhile, Saxo Bank clients are still in favour of a fall; however, the number of short positions has decreased to 61% (-8%).