- 69% of pending orders in the 100-pip range are to sell the pair
- 62% of traders are bullish on the Pound
- Important support level is located near 1.3020
- Upcoming Events: US Unemployment Claims, FOMC Member Dudley speaks
The Institute for Supply Management reported that its PMI for the US non-manufacturing sector posted weaker-than-expected increase to 55.3 in August, following the prior month's figure of 53.9.
An expansion was fuelled by strong increase in new orders and employment, suggesting the weaker job growth registered last month was temporary. Data indicated the US economy is set to gather momentum early in the Q3.
Unemployment claims at 1230GMT
The economic calendar for this session includes only two events that should be taken into account by GBP/USD traders. The US Department of Labor is to release weekly Unemployment Claims at 1230GMT. In addition, the President of the Federal Reserve Bank of New York is to speak about the economic outlook at New York University at 2300GMT.
GBP/USD fails to break weekly R2
Contrary to expectations, the Pound did move horizontally for long but instead tried to break through the weekly R1 at 1.3077. A reaction from release of information on the US ISM Non-Manufacturing PMI was barely enough to neutralize this attempt. In result, today the pair remains squeezed between the weekly R2 from the top and the weekly R1 from the bottom. From a technical perspective, the southern direction contains other various barriers, such as the approaching 55- and 100-hour SMAs. In this sense, the further surge is a more likely scenario. On the other hand, slightly above the 1.3070 level the pair is likely to encounter the upper line of a dominant descending channel, which might turn around the pair and in this way finally confirm its existence.
Hourly chart
The Sterling closed the second consecutive session with gains against the US Dollar. The rate remained steady on Thursday morning, being located between the weekly R1 and R2. This range may persist in case no significant events shake the market and pressure the rate either direction.
Daily chart
Bullish sentiment deteriorates
SWFX traders remain bullish on the Sterling, with 62% of open positions currently being long (-3%). Meanwhile, the number of pending orders stands at 66% to sell the Pound.
OANDA traders have turned slightly bearish on the pair, as 51% of open positions are short (unchanged from Wednesday). Moreover, traders at Saxo Bank are likewise bearish with 66% short positions (+3%).