- 68% of pending orders in the 100-pip range are to buy
- 59% of traders are bearish on the Pound
- Important resistance lies near 1.3420
- Upcoming events: US Final GDP q/q, US Unemployment Claims, FOMC Member Fischer speaks
The Commerce Department showed that new orders for the US-made capital goods rose more than anticipated 1.7% over the month of August, while shipments continued to increase, suggesting the strengthening of the US economy, despite an expected drag from Hurricanes Irma and Harvey.
Moreover, sign of rising spending on equipment buoyed expectations for the Fed's December rate hike.
US Final GDP for Q2
The main event of Thursday's trading session is the US Final Gross Domestic Product for the second quarter of 2017. This data is released at 1230GMT together with the US weekly Unemployment Claims. In addition, the Federal Reserve Governor Stanley Fischer is set to speak at 1415GMT.
GBP/USD about to leave the falling wedge
Contrary to expectations, the currency exchange rate did not make any significant moves yesterday and, for this reason, stayed in a falling wedge for additional day. However, the fact that the first four hours of this trading session were dominated by bears suggests that the pair is likely to leave the pattern in the southern direction.
Such outcome is supported not only by the weekly S1 located at the 1.3412 level but also by the 55-hour SMA, which is moving precisely along the resistance line of the wedge. Although the pair might face a strong support in the area between the 1.3350 and 1.3328 marks, from a larger perspective the Greenback should continue to gain value against the Pound.
Hourly chart
GBP/USD continues to move away from the upper wedge boundary, thus indicating to a possible decline in the medium term. Following the strong depreciation on Wednesday, the Pound was pushed in between the weekly S1 and S2 in the 1.3413/1.3328 area. The British currency managed to remain in this range during the first half of Thursday.
Daily chart
Market sentiment is strongly bearish
The bearish market sentiment dominates the pair on Thursday, as the number of short positions on Thursday is 59% (+1%). Meanwhile, 60% of pending orders are to buy the Pound (-1%).
OANDA traders remain bearish on the Pound, as 64% of open positions are short (-1%). Traders at Saxo Bank are decreasingly bearish with 65% short positions (-2%).