- 56% of pending orders in the 100-pip range are to BUY
- 57% of traders are bearish on the Sterling (-1%)
- Strong support circa 1.4050
- Upcoming events: US Unemployment Claims, US New Home Sales
The British Pound appreciated against the US Dollar on the official UK labour market data. The GBP/USD currency pair added 22 base points or 0.16%, touching the 1.4116 mark, and managed to sustain the up-move.
The number of working people in the UK rose surprisingly in the three month period to November, while regular wages increase at the strongest rate in a year, the official report indicated on Wednesday. The Office for National Statistics stated that the Average Earnings Index was unchanged at 2.5%, while earnings without bonuses grew 2.4% year-over-tear in the reported period. Statisticians said that with the amount of vacancies at a new record and strong employment, demand for labour remained solid.
Minor US data releases
Thursday's trading session includes two sets of minor data from the United States, namely, the weekly Unemployment Claims and New Home Sales to be published at 1330GMT and 1500GMT, respectively.
GBP/USD reluctant to breach 1.43
Upside risks have dominated the GBP/USD exchange rate for the third consecutive session. Contrary to expectations, the Pound did not return back to the breach senior channel circa 1.40, but moved confidently towards a new 1,5-year high at 1.43.
Similarly to other major pairs trading against the Greenback, technical indicators of this pair are pointing to a soon decline. This assumption is likewise reinforced by the fact that the bullish sentiment allayed considerably starting from late Wednesday.
In case a reversal is to occur in the nearest hours, this would re-confirm the existence of a three-week ascending channel. In line with this pattern, a strong southern barrier could be provided by the 1.4150 mark; the 55-hour SMA could likewise be located near this area.
Hourly chart
The Sterling appreciated 1.69% against the Greenback on Wednesday, thus leaving any range of the weekly and monthly PPs. This bullish sentiment has allayed considerably today which might suggest a soon decline. Given the pair's high positioning, the following trading days are likely to mark a period of further fall.
Daily chart
The SWFX sentiment remains bearish today, as 57% of traders are holding short positions (-1%). Meanwhile, pending orders are also bearish, as 52% of orders are set to sell.
The bearish sentiment of OANDA traders has remained at the same level with 59% short positions. Saxo Bank clients share the same sentiment with 55% short positions.
Spreads (avg, pip) / Trading volume / Volatility