- 53% of pending orders in the 100-pip range are to BUY
- 56% of traders are bullish on the Pound
- Pair met a resistance near 1.3180
- Upcoming events: Fed Chair Yellen Speaks
In result of the previous trading session the Pound managed to recover some lost positions amid sell-off of the Dollar. Traders with bullish outlook are expected to continue trying to return the pair back to the 1.3230 level. However, in order to bypass combined resistance at 1.3180, the cable would need a proper impulse.
The report showed that the country's economy added 261K jobs in the reported period, missing forecasts for a 310K increase. The weak pay growth is likely to hamper inflation to reach 2% target.
Chair Yellen speaks
The only even that might cause some changes in the market will the Fed Chair Janet Yellen speech in Washington. In the meantime, traders are advised to closely follow any news about the status of Brexit talks, as now they represent the main source of volatility for the given currency pair.
GBP/USD meets resistance at 1.3170
Due to quite active sell-off of the buck yesterday, the cable managed to break to the top instead of falling to support zone near the 1.3030 mark. However, the surge was boldly stopped by a combination of the 100- and 200-hour SMAs together with the 61.8% Fibonacci retracement level at 1.3166. For this reason, the currency rate is likely to start moving back to the 1.3120 mark. However, there is a need to take into account existence of an unconfirmed three-week long descending channel consisting of three reaction lows and one reaction high. If this assumption is true, then in medium perspective the Pound should continue its gradual recovery. But in daily range its valuation is expected to be influenced by release of the Halifax HPI and the Fed Chair Yellen speech.
Hourly chart
On daily chart the cable continues to climb upstairs after making a rebound from the lower support line of a minor symmetrical triangle. Yesterday's surge elevated it above the weekly PP and the 38.2% retracement level, which indicate on the further surge at least until the clash with 55-day SMA. However, there is still a risk that careless rhetoric from Trump or leaks from the current Brexit talks will cause an unexpected volatility.
Daily chart
Bulls strengthen their positions
The bullish SWFX market sentiment has decreased by another two percentage points in this session, thus currently standing at 59%. In addition, 56% of traders prefer to buy the Pound against other currencies instead of selling it.
OANDA traders are bullish in this session, as 54% of open positions are long on Tuesday (-6%). Meanwhile, Saxo Bank clients are still in favour of a fall and the number of short positions has increased to 55% (+3%).