- 64% of pending orders in the 100-pip range are to BUY
- 51% of traders are bullish on the Sterling
- Strong resistance area circa 1.3540
- Upcoming events: US PPI m/m, US Core PPI m/m, US Unemployment Claims, FOMC Member Dudley to speak
The Sterling received some pips against the US Dollar on the upbeat UK manufacturing report. The GBP/USD currency pair ran into confrontations between bears and bulls, touching the intraday lowest and highest levels of 1.3485 and 1.3563,respectively.
The UK industrial output appeared to provide a solid contribution to the country's economic expansion in 2017 final months, while construction was set to drag, official release indicated. Britain's industrial production grew a monthly 0.4% in November, fuelling the annual increase of 2.5%. Despite the economic slowdown in the most of 2017 due to higher inflation, the exporters enjoyed better year, thanks to weaker Sterling and strengthening in the Euro zone's economy.
US PPI
The US Bureau of Statistics is set to publish the country's Producer Price Index and the Core PPI for December at 1330GMT. The weekly Unemployment Claims are also released at the same time.
The day will end with the President of the Federal Reserve Bank of New York William Dudley who is due to speak about the economic outlook at the Securities Industry and Financial Markets Association at 2030GMT.
GBP/USD tests 50% Fibo at 1.3485
In essence, the past 24 hour the cable spent testing different support levels. In first hours of this trading session, it bypassed the weekly S1 and now is trying to pave the path through another support area located between the 1.3497 and 1.3491 marks.
Despite an active pressure, these attempts most probably will fail because of the barrier formed by the 50% Fibonacci retracement level located at 1.3485 and the bottom trend-line of a junior descending channel. On the other hand, due to anticipation of the upcoming data releases the pair might prematurely reach the monthly PP at 1.3458.
As largest part of pending orders in 50-pip range is set to buy, the currency rate, generally, is expected to make a rebound near one of the above support levels.
Hourly chart
The Pound continues to weaken against the US Dollar for the third consecutive session. Its fall below the 1.3505 mark was limited by the weekly S1. This support, however, surrendered early today when strong bearish sentiment prevailed in the market.
Technical indicators demonstrate this price decline is likely to continue until the end of this week, thus sending the pair towards the monthly PP and the weekly S2 at 1.3459 and 1.3442, respectively.
Daily chart
The SWFX sentiment remains bullish in this session, as 51% of traders are still holding long positions. In addition, 58% of pending orders are to buy the Sterling (+2%).
Meanwhile, OANDA traders have decreased their bearish sentiment by one percentage point today with 59% short positions. Saxo Bank clients share the same sentiment with 61% short positions (-4%).
Spreads (avg, pip) / Trading volume / Volatility