- 64% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 63% bullish
- UK data will be released each day of the week
The previously drawn patterns of the GBP/USD pair have continued to push the currency exchange rate higher. Moreover, a pivot point was passed, which began to provide support to the currency pair.
The British Pound strengthened against the Greenback, following the UK Service PMI data release on Wednesday at 08:30 GMT. The GBP/USD currency pair gained 25 pips, or 0.19%, to continue fluctuating in the 1.3209 area.
The Markit released the monthly UK Purchasing Managers' Index data that came out better-than-expected of 55.1, and also better from the previous period.
A currency analyst at TorFX Laura Parsons stands: "A combination of better-than-forecast UK construction data and worse-than-expected Eurozone retail sales figures kept the GBP/EUR exchange rate steady on Tuesday,"
A UK release almost each morning
This week is the first of the month. That means that almost each day there will be an UK event that is worth covering. For the first third days of the week the Purchasing Managers Indexes of the United Kingdom were be released each morning at 08:30 GMT. The reviews of these releases are already available in the Fundamental Analysis section.
Meanwhile, note that on Thursday the Governor of the Bank of England gave a public speech at 10:00 GMT.
The end of the week will bring another, although minor, data release in the UK. The Halifax HPI will be released at 07:30 GMT.
GBP/USD continues in junior pattern
The Pound has extended its gains against the US Dollar on Thursday. Moreover, the rate has managed to pass the resistance of the PP at 1.3247.Due to that reason the currency exchange rate will face no resistance, as it surges up to the levels of significance near the 1.3220 mark. Near that level a R1 level together with the upper trend lines of the junior, medium and long term patterns. Coincidentally, just above the R1 all of the mentioned trend lines meet.
However, for a surge the rate is set to need support. It could be provided by the 55-hour SMA, lower trend line of the junior pattern and the PP at 1.3247.
Hourly chart
By reviewing the daily chart of the GBP/USD pair it was discovered that there exists a descending channel pattern that has been in action since the middle of April. The recent rebound managed to break this pattern.
Due to that reason it is assumed that there is a larger, dominant pattern lacking from the picture, as the already broken pattern has to be a junior representation of a larger price movement.
Daily Chart
The bullish market sentiment of OANDA has increased, as 70% of its traders are holding long positions (+2%). Saxo Bank clients are likewise bullish with 61% (-3%) long positions. The market sentiment in this has once more largely remained unchanged.
Spreads (avg, pip) / Trading volume / Volatility