- 53% of pending orders in 100-pip range are to sell the pair
- 59% of traders are bullish on the Pound
- Gains could be capped near the 1.3080 mark
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Upcoming Events: US NFIB Small Business Index, US JOLTS Job Openings, IBD/TIPP Economic Optimism
The Sterling strived to offset post-NFP losses, as Monday's report revealed that the UK home prices rose more than anticipated in July. GDP/USD showed almost no reaction to the data, however, later on it posted a gradual fall to the 1.3040 mark, but then went back to the level seen before the release. Halifax reported that its House Price Index rose 0.4% month-over-month in July, surpassing expectations for a 0.3% increase.
However, experts suggested that the UK property market was relatively stagnant or cooling, as the yearly prices growth pace slowed to 2.1% in the reported period. Moreover, the demand for housing would weaken amid a slow wage growth and an ongoing shortage of available properties, which is set to boost house prices in the upcoming months.
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Minor data releases
This session is marked by some data releases of minor and intermediate importance from the Unites States. First, the Small Business Index is to be released at 1000GMT by the National Federation of Independent Business. Second, the Bureau of Labor Statistics is to publish the number of job openings for the month of June at 1400GMT together with Economic Optimism by IBD/TIPP.
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GBP/USD flat on Tuesday
In line with expectations, GBP/USD was relatively still on Monday, as no major fundamental events that could shake the market were scheduled for the given session. As a result, the Pound formed a flat short-term channel down and tested its upper boundary this morning. Meanwhile, the rate remains stranded between the bounds of the 55-hour SMA and the weekly and monthly S1s at 1.3065 and 1.2950, respectively. The Pound may appreciate against the Greenback in this session, testing a resistance set by the aforementioned 55-hour SMA and the monthly PP at 1.3085. Nevertheless, it is likely that yesterday's lack of momentum may likewise repeat today, thus making no significant changes to the overall price level by Wednesday morning.
Hourly chart
The Pound closed Monday's session with slight losses against the US Dollar. Today, the rate continues to demonstrate a lack of momentum, occasionally entering both the green and red area. It is located near the 20-hour SMA where it is likely to remain. The Pound may push towards the monthly PP, but a breakout is not expected. Thus, the British currency should remain between the monthly PP and S1 in the 1.3085/1.2944 territory.Daily chart
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Sentiment changes in favour of bears
The bullish market sentiment has increased in this session, as 59% of traders are holding open positions (+3%). Meanwhile, 53% of pending orders are to sell the Pound (+1%).
In the meantime, traders at Saxo Bank remain bearish on the pair, with 65% of traders holding short positions (unchanged from Monday). The same bearish sentiment is shared by OANDA where 60% of open positions are likewise short (+2%).
Spreads (avg, pip) / Trading volume / Volatility