- 58% of pending orders in the 100-pip range are to SELL
- 54% of open positions are bullish (-1%)
- Notable support located circa 1.3380
- Upcoming events: US Unemployment Claims, Chicago PMI
Contracts to purchase previously owned houses increased in November, supported by the job growth in the strengthening US economy.
The National Association of Realtors states that pending home sales indicator rose to 109.5 points to show a 0.2% gain for the month. The real estate market restored some momentum after inactivity for much of 2017 due shortage of inventory, which caused an increase in prices, and a lack of both land and labour.
Quiet session
Thursday's trading session will be relatively calm, as only two fundamentals are scheduled for today, namely, the weekly US Unemployment Claims and Chicago Purchasing Managers' Index to be released at 1330GMT and 1445GMT, respectively.
GBP/USD continues to edge higher
The Sterling has strengthened against the US Dollar during the past two trading sessions. The broadly-based weakness of the latter has allowed the Pound to push above the 1.3440 mark early on Thursday. Thus, the rate was testing the upper boundary of a four-week descending channel.
Apart from the given line, the nearest resistance is provided by the weekly R2 located at 1.3485. It is, however, unlikely that the rate pushes this high in this session.
Technical indicators suggest that the strong upward movement should allay, but the Sterling could nevertheless remain relatively stable against its American counterpart.
The most likely downside target for today is the combined support of the 55-, 100– and 200-hour SMAs and the monthly and weekly PPs circa 1.3370.
Hourly chart
Following several sessions of consolidation, GBP/USD eventually managed to pick up speed and push away from the combined resistance of the monthly and weekly PPs circa 1.3370.
The Sterling failed to surpass the weekly R1 at 1.3419 on Wednesday; this mark, however, was overcome early today.
By and large, it is likely that the bullish sentiment prevails in this session, thus leaving the rate above the aforementioned weekly R1 or close to this level.
Daily chart
The bullish market sentiment has decreased slightly on Thursday, as 54% of open positions are long (-1%). In addition, 53% of pending orders are to buy the Sterling (+1%).
The market sentiment of OANDA traders has remained at the same level for the second consecutive session, as 51% of open positions are long. Meanwhile, Saxo Bank clients are still bearish with 56% short positions (unchanged from Wednesday).
Spreads (avg, pip) / Trading volume / Volatility