- 51% of pending orders in the 100-pip range are to BUY the Sterling
- SWFX market sentiment is 66% bullish
- No significant data releases today
The Pound re-tested many-month low near 1.3230 on Monday morning.
The British Pound weakened against the Greenback, following the UK CPI data release on Wednesday. The GBP/USD currency pair lost six pips, or 0.04%, to continue fluctuating in the 1.3319 area.
The Office for National Statistics released Consumer Price Index data that came out in line with a forecast of 2.4% in May, staying unchanged from the previous period.
"Partially offsetting downward effects came from price changes for games, domestic electricity, food and non-alcoholic beverages, and furniture and furnishings," said a representative from the Office for National Statistics.
Calm day
Monday is expected to be calm from the fundamental point of view, as the only noteworthy events are the President of the Federal Reserve Bank of Atlanta Raphael Bostic speaking about the economic outlook and monetary policy and his San Francisco counterpart John Williams delivering closing remarks at a conference on banking culture at 1700GMT and 2000GMT, respectively.
GBP/USD trades below 1.33
The Pound continued to weaken against the US Dollar on Friday morning, thus re-testing its seven-month low of 1.3232. Bulls managed to move the rate slightly higher during the remaining part of the day, but a move above the psychological 1.33 level did not follow.It is expected that the rate targets the upper channel line near 1.34 this week. In the meantime, this session might not result in significant advances due to several important resistance areas lying ahead. In addition, no fundamental data releases that could strengthen the bullish momentum are scheduled for this session.
Thus, today's highest point could be the 100– and 55- hour SMAs and the weekly PP at 1.3350. In case bears prevail, the 1.32 mark should remain intact.
Hourly chart
The Sterling has plunged 7.28% against the US Dollar since mid-April. Despite edging higher last week, bears managed to regain dominance in the market and push the rate down to 1.3255 this morning.
The pair is expected to strengthen next week, setting the 200-day SMA and the monthly R1 at 1.3650 as a mid-July target.
Daily Chart
The SWFX market sentiment is stronger today and stands at 66% bullish positions. Meanwhile, 51% of pending orders are to sell the Pound.
The market sentiment of OANDA is strongly bullish, as 65% of its traders are holding long positions (-5%). Saxo Bank clients are likewise bullish with 62% long positions (-1%).
Spreads (avg, pip) / Trading volume / Volatility