- 53% of pending orders in the 100-pip range are to BUY the Sterling (+1%)
- SWFX market sentiment is 63% bullish (-3%)
- UK data will be released each day of the week
The Pound's expected surge in the borders of a dominant descending channel pattern has not occurred due to the prevailing strength of another pattern. Namely, the pattern's resistance line has managed to hold its ground for the second time on Tuesday.
The British Pound strengthened against the Greenback, following the UK construction PMI data release on Tuesday at 08:30 GMT. The GBP/USD currency pair gained 11 pips, or 0.09%, to continue fluctuating in the 1.3168 area.
The Markit released the monthly UK Purchasing Managers' Index data that came out better-than-expected of 53.1, and better from the previous period.
A Senior Economist Tim Moore from IHS Markit stands: "A solid contribution from house building helped to drive up overall construction activity in June, while a lack of new work to replace completed civil engineering projects continued to hold back growth. "
A UK release almost each morning
This week is the first of the month. That means that almost each day there will be an UK event that is worth covering. For the first third days of the week the Purchasing Managers Indexes of the United Kingdom will be released each morning at 08:30 GMT. The data releases will be covered on the live webinar platform, and the cover will begin each day at 08:20 GMT.
Meanwhile, note that on Thursday the Governor of the Bank of England will give a public speech at 10:00 GMT. The event might influence the strength of the British pound.
The end of the week will bring another, although minor, data release in the UK. The Halifax HPI will be released at 07:30 GMT.
GBP/USD once more touches resistance line
Very similarly to the EUR/USD the GBP/USD pair has retraced back up to the medium term resistance line. Due to that reason it was of utmost importance on Tuesday to watch whether or not the combined resistance level near the trend line will hold its ground.The cluster consists of the trend line, weekly PP and the 200-hour SMA. These levels combined would begin providing support, if the cluster is broken.
Meanwhile, if the resistance holds its ground, the rate could decline down to the 55-hour SMA near 1.3155.
Hourly chart
By reviewing the daily chart of the GBP/USD pair it was discovered that there exists a descending channel pattern that has been in action since the middle of April.
The recent rebound provided a chance to more precisely draw the upper trend line of the descending channel pattern.
Daily Chart
The bullish market sentiment of OANDA has increased, as 69% of its traders are holding long positions (+2%). Saxo Bank clients are likewise bullish with 60% (-2% long positions. The market sentiment in this trading session has largely remained unchanged.
Spreads (avg, pip) / Trading volume / Volatility