- 52% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 64% bullish
- Upcoming fundamentals: UK Public Sector Net Borrowing, UK Inflation Report Hearings
The Sterling's appreciation is restricted by the 55- and 100-hour SMAs ear 1.3470.
The Census Bureau released two data sets simultaneously, where Residential Building Permits for the month of April came out in line with a forecast of 1.35M, moreover, the same number was released in the previous period.
The US Dollar's slight weakening may be affected due to the lower-than-expected Housing Starts data of 1.29M, compared to the forecast of 1.32M.
British Inflation Report Hearings
There are two fundamental events that traders should take into account today, namely the British Public Sector Net Borrowing and Inflation Report Hearings at 0830GMT and 0900GMT, respectively. The remaining part of this session is to be quiet from the fundamental perspective.
GBP/USD halts at 1.34
After breaching the previous 2018 low and a strong support level, GBP/USD remained under bearish pressure until the psychological 1.34 level and the bottom channel line were reached. The pair's subsequent movement was sideways in a very narrow range.Technical indicators are starting to recover which might point to appreciation in this session. However, the pair faces the combined resistance of the 55– and 100-hour SMA at 1.3460—the level which might not surrender unless strong bullish sentiment pushes the pair higher.
This upside momentum might be provided by UK Inflation Report Hearings at 0900GMT. In this case, the next target is the weekly PP and the 200-hour SMA at 1.3520. Conversely, a breakout of 1.34 should send the pair for the weekly S2 at 1.3360.
Hourly chart
Following several days of fluctuating near the 200-day SMA circa 1.3530, the Sterling eventually breached this line and fell down to the 1.3415 mark on Monday morning.
It is expected that a medium-term surge could start this week. In order to confirm this scenario, the aforementioned long-term SMA needs to be surpassed.
Daily Chart
The bullish SWFX market sentiment has remained unchanged with 64% of open positions being long today. Meanwhile, 55% of pending orders remain to sell the Pound (-6%).
The market sentiment of OANDA traders is strongly bullish, as 59% of them are holding long positions (-3%). Saxo Bank clients share the same sentiment with 59% long positions (-1%).
Spreads (avg, pip) / Trading volume / Volatility