- 59% of pending orders in the 100-pip range are to BUY the Sterling
- SWFX market sentiment is 62% bullish (-1%)
- Upcoming fundamental events: UK Public Sector Net Borrowing, MPC Official Bank Rate Votes, BOE Monetary Policy Statement and Official Bank Rate, BOE Governor Carey to speak, US Philly Fed Manufacturing Index, US Unemployment Claims
The Pound is expected to bounce off the channel line near 1.31 today.
The Greenback strengthened against the European single currency, following the US Building data release on Tuesday. The EUR/USD currency pair lost two pips, or 0.02%, to continue fluctuating in the 1.5596 area.
The Census Bureau released Residential Building Permits data that came lower-than-expected with a forecast of 1.35M in May, and lower from the previous period.
A survey showed that builders are: "..increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability."
BOE Monetary Policy Statement
The main attention in this session is put on the Bank of England which is to release the MPC Official Bank Rate Votes, its Monetary Policy Statement and the Official Bank Rate at 1100GMT. The BOE Governor Mark Carney is set to speak at 2015GMT.
Meanwhile, some minor data from the United States are likewise released today, namely, the Philly Fed Manufacturing Index and the weekly Unemployment Claims published at 1230GMT.
GBP/USD fails to overcome 1.32
GBP/USD was moving in line with the short-term falling wedge on Wednesday. After ranging slightly below the weekly S1, the Pound picked up momentum and reached the 55-hour SMA at 1.32. This line, however, proved to be strong resistance which sent the pair back down to the 1.3150 level this morning.The Sterling still lacks some pips to reach the bottom boundary of a channel down at 1.31. The give currency is likely to approach this boundary, being strengthened by the current bearish momentum.
However, the market sentiment should change to bullish later in the day, thus allowing the rate to test either the weekly S1 and the 55-hour SMA or the 100-hour moving average at 1.3185 and 1.3232, respectively. Important data releases from the UK are scheduled for today.
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 bullish and stands at 63% long positions (-1%). Meanwhile, pending orders are at equilibrium.
The market sentiment of OANDA is strongly bullish, as 63% of its traders are holding long positions (+1%). Saxo Bank clients are likewise bullish with 62% long positions (+2%).
Spreads (avg, pip) / Trading volume / Volatility