- 57% of pending orders in the 100-pip range are to BUY the Sterling
- SWFX market sentiment is 61% bullish
- US CPIs at 12:30 GMT
On Thursday the main effort in analysing the GBP/USD was spent marking the new junior descending pattern. Besides that there were no new developments.
The British Pound strengthened against the Greenback, following the UK Service PMI data release on the previous 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,"
US CPI data sets
On Thursday the main event for the US data releases this week will take place. Namely, join for the webinar at 12:20 GMT to see the coverage of the US CPI and Core CPI, which will be out at 12:30 GMT.
GBP/USD new pattern spotted
On Wednesday the Pound passed a significant support level against the US Dollar, which marked the full breaking of a previously active medium term ascending channel pattern.The event resulted in the pair declining down below various levels of significance on Thursday. Namely, on Thursday the currency rate had no support down to the 1.3160 mark, where close by the 50.00% Fibonacci retracement level together with the weekly S1 are located at.
Meanwhile, note that a new medium term pattern has been drawn. It is set to guide the rate lower until the end of July.
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
This indicates that for the last couple of trading sessions nothing has changed. Retail traders remain bullish and some are even expecting to open more long positions, if the currency rate reaches certain criteria. For example, it breaks the resistance on the daily chart.
The bullish market sentiment of OANDA has remained intact, as 63% of its traders are holding long positions. Meanwhile, Saxo Bank clients are likewise bullish with 59% long positions.
Spreads (avg, pip) / Trading volume / Volatility