- 55% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 59% bullish
- Weekly calendar webinar at 12:00 GMT
The Pound has gained more ground against the US Dollar. However, It gained even more than it was initially expected, as a dominant resistance line has been broken.
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,"
Weekly review and UK GDP
On Monday there is no notable UK data set to be released. However, the UK GDP will be for the first time released on a monthly basis on Tuesday. Due to that reason it is set to be very important.
Meanwhile, on Monday Dukascopy Analytics will host a weekly calendar review webinar at 12:00 GMT.
GBP/USD breaks dominant pattern
The surge of the Pound has extended on Monday against the US Dollar, as the currency pair had reached above the 1.3350 mark during the first part of the day's trading.During the move the pair broke the resistance of a dominant descending pattern, which managed to delay the appreciation of the Sterling against the Dollar on Friday.
However, the surge was stopped by and was still set to face the combined resistance of the weekly R1 and the upper trend line of medium term ascending pattern near the 1.3350 mark.
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
This indicates that some retail traders might have cancelled their take profit sell orders. Meanwhile, others have opened additional buy orders, which would open long positions in case the currency rate breaks additional resistance levels.
The bullish market sentiment of OANDA has remained unchanged, as 68% of its traders are holding long positions. Meanwhile, Saxo Bank clients are likewise bullish with 59% long positions.
Spreads (avg, pip) / Trading volume / Volatility