- 56% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 61% bullish (+4%)
- Upcoming fundamental events: US Employment monthly data sets at 12:30 GMT
The Pound continued to decline on Friday against the US Dollar, as the rate reached new low levels.
The British Pound weakened against the Greenback, following the UK Services PMI data release on Thursday. The GBP/USD currency pair lost 22 pips, or 0.16%, to continue fluctuating in the 1.3596 area.
The Markit released Services Purchasing Managers' Index that came out lower-than-expected of 52.8, compared to the 51.7 in the previous period.
"The services survey adds to signs that the rate of economic growth remained disappointingly subdued at the start of the second quarter," said Chief Economist at Markit Chris Williamson.
US employment data
Today Swing Traders will be paying attention to the US monthly employment data sets, which will be released at 12:30 GMT.
Tune in to see the live coverage done by Dukascopy analysts on our live webinar platform at 12:20 GMT. In addition, at 12:00 GMT this week's Friday webinar of the Analytics team will start. This Friday a full overview of our publications is planned together with a questions and answers session in the chat.
GBP/USD books new low level
Following the reaching of the support cluster near the 1.3580 mark, the GBP/USD currency pair eventually passed it at the middle of Thursday's trading session. However, the rate's decline eventually was paused by a 38.20% Fibonacci retracement level at the 1.3539 level.On Friday the rate was about to get squeezed in between the both mentioned levels. Although, it was expected that the rate will eventually continue its decline, as additional resistance in the form of the 55-hour SMA was approaching.
Hourly chart
Strong downside risks have been pushing the GBP/USD exchange rate considerably lower for the second consecutive week. As a result, the pair had reached the 200-day SMA near 1.3530 by Thursday morning.
Technical indicators on the daily time-frame are located in the overbought territory. Thus, the aforementioned moving average might mark a reversal point from which the Pound tries to move towards the 1.40 mark within the following week.
Daily Chart
The SWFX market sentiment is bullish, as 61% of open positions are long today (+4%). Meanwhile, 65% of pending orders remain to sell the Pound (-4%).
The market sentiment of OANDA traders has turned bullish, as 59% of them are holding long positions (+4%). Saxo Bank clients share the same sentiment with 55% long positions (+1%).
Spreads (avg, pip) / Trading volume / Volatility