- 63% of pending orders in the 100-pip range are to BUY
- 60% of traders are bullish on the Pound (+2%)
- Nearest support is located circa 1.32
- Upcoming events: US Unemployment Claims, US Pending Home Sales m/m
The Commerce Department showed that the US durable goods rose 2.2% for the month of September, owing to higher demand for transportation equipment.
The report supported an upbeat sentiment in the manufacturing industry, as it managed to start recovering after being hit by hurricanes. In addition, the proposed corporate tax cut is likely be one more catalyst providing a stronger footing for growth in the fourth quarter, as well as in the beginning of 2018.
US Unemployment Claims
The economic calendar for the GBP/USD exchange rate includes two sets of data that should be taken into account. The US Department of Labour is to release the weekly Unemployment Claims at 1230GMT, while the US National Association of Realtors will publish Pending Home Sales for the month of September at 1400GMT.
GBP/USD inches higher amid GDP report
According to the Office for National Statistics, the temps of growth of British economy spiked to 0.4% in the third quarter. This news gave the cable an upside momentum, which it used to break through the upper trend-line of a dominant descending channel.
As there are no significant UK or US data releases planned for today, bulls might use this lull to elevate the pair to the weekly R1 at 1.3306. In support of this assumption, there is need to take into account that some of the Pound traders are simultaneously following the ECB meeting and are trying to push the Sterling in parallel with the Euro.
On the other hand, bears might use an area between the 1.3285 and 1.3290 marks to either halt or even turnaround the pair.
Hourly chart
Solid UK GDP data mid-Wednesday paved the way for bulls to end the session slightly above the 1.3260 mark. Thus, the rate was trading between the monthly and weekly PPs at 1.3322 and 1.3197, respectively, on Thursday morning. The lower barrier is likewise reinforced by the 20-hour SMA circa 1.3215.
Daily chart
Market sentiment mixed
The bullish SWFX market sentiment has strengthened in this session, thus currently standing at 60% (+2%). In addition, 59% of pending orders are to buy the pair (+6%).
OANDA traders are bullish in this session with 53% of open positions being both long (+2%). Meanwhile, Saxo Bank clients are still in favour of a fall, as the number of short positions has increased to 69% (+11%).