- 65% of pending orders in the 100-pip range are to SELL
- 52% of traders are bearish on the Sterling (-1%)
- Important support cluster lies circa 1.3310
- Upcoming events: Speeches by FOMC Members Harker and Dudley, Fed Chair Designate Powell and Treasury Secretary Mnuchin, US CB Consumer Confidence
Sales of new single-family homes in the US marked solid increase to reach a ten-year high due to robust demand throughout the country, providing a boost to the property market.
The Commerce Department showed that new home sales rose 6.2% to a seasonally adjusted yearly rate of 685K in October, the highest level in ten years. Moreover, upbeat results indicated that housing kept gaining momentum after the lack of available properties and suitable land restrained the growth.
Session full of speeches
Four speeches are scheduled for this session. The President of the Federal Bank of New York William Dudley is due to deliver opening remarks at the annual conference on the evolving structure of the US treasury market, while the President of the Federal Bank of Philadelphia Patrick Harker is to speak about financial safety for the aging population at 1415GMT and 1515GMT, respectively.
Meanwhile, the Federal Reserve Chair Designate Jerome Powell is to testify on his nomination as the Federal Reserve Chief before the Senate Committee on banking, Housing and Urban Affairs at 1445GMT, as well as the US Treasury Secretary Steven Mnuchin will participate at the annual conference on the evolving structure of the US treasury market at 2045GMT.
The only data release today is the US Consumer Confidence published by the Conference Board Inc. at 1500GMT.
GBP/USD expectedly rebounds from 1.3380
During previous trading session the cable surged to resistance zone located at 1.3370-1.3380 and then pulled back to the 1.3220. The plunge once again was stopped by a combination of the 55- and 100-hour SMAs, which are lying along the bottom boundary of an ascending channel. For now, such soars and retreats were proofed to be successful.
Today, the rate is likely to try to plummet to the weekly PP amid the Governor Powell's testimony before Congress and Trump's meeting with Senate Republicans about adoption of the new tax reform.
However, neither of these events is expected to stop the rate in medium perspective from reaching and making a rebound from the upper boundary of a long-term dominant descending channel near 1.3400.
Hourly chart
Despite strong upside momentum on Monday morning, the bearish market sentiment took over during the second half of the given session.
By and large, the pair has not changed its positioning during the last three sessions, demonstrating that there is still some upside potential up to the senior channel circa 1.3380. Daily chart
Market sentiment is mixed
The SWFX market sentiment remains bearish on Tuesday, as 52% of open positions are short (-1%). Meanwhile, 54% of pending orders are to buy the Pound (+2%).
The market sentiment of OANDA traders is at equilibrium in this session, as 50% of open positions are both long and short. On the other hand, Saxo Bank clients are still bearish on the Sterling with 64% short positions (-4%).