- 62% of pending orders in the 100-pip range are to SELL
- 52% of open positions are bullish (-2%)
- Notable resistance located circa 1.3595
- Upcoming events: UK Manufacturing PMI
Factory activity in Chicago strengthened again by the end of the year, according to the MNI survey.
Market News International stated that its PMI of manufacturing sector in Chicago jumped to 67.6 in December, after 63.9 reading in the previous month. The survey also showed that businesses were shoring the stock level to support lead times and prepare for next year's product launches. However, the employment rate decreased, but remained higher than in post-crisis times.
Quiet session
The only notable data release that should be mentioned in this session is the British Manufacturing PMI to be released at 0930GMT.
GBP/USD trades in narrow channel
Upside risks dominated GBP/USD during the last trading day of 2017. The pair managed to breach the 50.0% Fibo and eventually consolidated near the 1.3530 mark.
Technical indicators are in favour of a subsequent surge that would push the rate above its three-month high of 1.3550. The nearest resistance that could halt further advances is the distant weekly and monthly R1s circa 1.3610.
In case the British Manufacturing PMI to be published at 0930GMT does not put an upward pressure on the rate and it thus manages to maintain its movement sideways, this might signal to a soon change in the sentiment.
Possible downside targets in this session is the 55-hour SMA and the weekly PP near 1.3475.
Hourly chart
The Sterling continues to appreciate against the Greenback for the fourth consecutive session. As a result the pair has entered a range between the weekly and monthly R1s and PPs.
Technical indicators suggest that this bullish sentiment could prevail during the following sessions, but it should nevertheless decrease in strength, thus eventually allowing bears to take the upper hand.
Daily chart
The bullish market sentiment has decreased on Tuesday, as 52% of open positions are long (-2%). In addition, 56% of pending orders are to buy the Sterling (+4%).
The market sentiment of OANDA traders has turned bearish today with 53% short positions, compared to 50% on Friday. Saxo Bank clients share the same sentiment with 64% short positions (+4%).
Spreads (avg, pip) / Trading volume / Volatility