- 71% of pending orders in the 100-pip range are to BUY the Sterling
- SWFX market sentiment is 62% bullish
- Widgets webinar at 12:30 GMT
On Thursday the main effort in analysing the GBP/USD was spent marking the new junior descending pattern. Besides that there were no new developments.
The British Pound strengthened against the Greenback, following the UK Service PMI data release on the previous 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,"
Dukascopy Widgets webinar fills the day
On Friday, Dukascopy Analytics are intending to host only one webinar. Namely, the introduction to Dukascopy widgets webinar, which is set to start at 12:30 GMT.
GBP/USD declines as expected
The Pound bounced off the upper trend line of a medium term descending channel pattern against the US Dollar in the second half of Thursday's trading session. The event resulted into the rate plummeting as low as the 1.3120 mark on Friday morning.The decline was only shortly slowed down by a Fibonacci retracement level near the 1.3170 mark.
In regards to the near term future, the pair is set to decline down to the support of a dominant pattern below the 1.31 level.
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 for the last couple of trading sessions nothing has changed. Retail traders remain bullish and some are even expecting to open more long positions, if the currency rate reaches certain criteria. For example, it breaks the resistance on the daily chart.
The bullish market sentiment of OANDA has remained intact, as 67% of its traders are holding long positions. Meanwhile, Saxo Bank clients are likewise bullish with 60% long positions.
Spreads (avg, pip) / Trading volume / Volatility