- SWFX market sentiment is 68% bullish
- 58% of pending orders in the 100-pip range are to BUY
- US PPI and Jobless Claims
Sterling continued it decline against the US Dollar.
The Energy Information Administration released the US Crude Inventories data that came out higher-than-expected. Instead of the expected negative 2.8 million, the data came out only 1.4 million negative.
The Australia and New Zealand Banking Group announced on Wednesday: "Crude oil prices rose as the reality of US sanctions on Iran weighed on sentiment."
US PPI and Jobless Claims
On Thursday there are no major data releases that can change the position for this currency pair. However, there are minor fundamental events. Namely, the US PPI and Unemployment claims.
Meanwhile, the data release will be covered by the Dukascopy research team on the bank's live webinar. The macroeconomic coverage will begin at 12:20 GMT.
GBP/USD pressured by 55-hour SMA
The 55-hour SMA has managed to restrict the Pound from appreciation for the fifth consecutive session. This line was re-tested early on Wednesday, followed by a plunge down to the weekly S2 at 1.2854.It is apparent that the pair has fallen down to the bottom boundary of three different-scale channels. This allows to think that some appreciation might be under way. In addition, technical indicators still remain in the strongly oversold territory. A surge is expected only if the 55-hour SMA and the monthly and weekly S1s are breached at 1.2930. This move should trigger bulls for a short-term surge up to the monthly PP at 1.3050, at least.
On the other hand, it does not seem that the rate could sustain the current decline any longer. The psychological 1.28 level is unlikely to be breached to the downside.
Hourly Chart
The GBP/USD currency exchange rate continued to decline in value for the last three months. This fall occurred when the pair broke a long-term ascending channel on April 27.
Furthermore, the Japanese candlestick opens above a support cluster set by the combination of the weekly and the monthly pivot points near the 1.29 mark. This could suggest that an upside movement on the smaller time frame is apparent during the following trading sessions.
Daily chart
SWFX traders are bullish today on the GBP/USD pair, as 68% of open positions were LONG during the morning hours. Moreover, traders set up orders are also bullish during the morning hours, as 58% of trader set up orders are LONG.
Meanwhile, the market sentiments of OANDA traders are bullish on the GBP/USD pair as 70% of open positions are LONG. In addition, Saxo bank traders are 63% bullish in regards to this exchange rate.
Spreads (avg, pip) / Trading volume / Volatility