- 50% of pending orders in the 100-pip range are to BUY the Sterling (-3%)
- SWFX market sentiment is 63% bullish
- UK data will be released each day of the week
On Wednesday there were many developments in regards to the GBP/USD currency pair. Namely, there are new patterns discovered, fundamental events taking place and a surge about to last for a month.
The British Pound strengthened against the Greenback, following the UK Service PMI data release on Wednesday at 08:30 GMT. The GBP/USD currency pair gained 25 pips, or 0.19%, to continue fluctuating in the 1.3209 area.
The Markit released the monthly UK Purchasing Managers' Index data that came out better-than-expected of 55.1, and also better from the previous period.
A currency analyst at TorFX Laura Parsons stands: "A combination of better-than-forecast UK construction data and worse-than-expected Eurozone retail sales figures kept the GBP/EUR exchange rate steady on Tuesday,"
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 reveals new patterns
There are more than couple of new developments on the GBP/USD charts. First of all the pair has pierced the medium term resistance line, as it was expected before.Secondly, a new medium scale ascending pattern has been revealed, which is highly likely going to guide the currency exchange rate higher throughout July.
Third and utmost important to day traders is the increase of volatility caused by UK Services PMI this morning. The increase of volatility caused the reveal of a junior ascending channel pattern, which is guiding the currency pair up to the PP at the 1.3250 mark.
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 managed to break this pattern.
Due to that reason it is assumed that there is a larger, dominant pattern lacking from the picture, as the already broken pattern has to be a junior representation of a larger price movement.
Daily Chart
The bullish market sentiment of OANDA has increased, as 68% of its traders are holding long positions (-1%). Saxo Bank clients are likewise bullish with 64% (+2%) long positions. The market sentiment in this has once more largely remained unchanged.
Spreads (avg, pip) / Trading volume / Volatility