- 59% of pending orders in the 100-pip range are to BUY
- SWFX market sentiment is 51% bullish
- Downside potential until 1.2230
- G20 meetings are held for two days
The US Census Bureau revealed on Friday that the US building permits data did not meet expectations, showing the growth pace of only 1.30M units in February, following the downwardly revised 1.38M reading in the prior month.
The stronger-than-expected fall in the US homebuilding was caused by a plunge in the multi-family housing construction offsetting a rise in single-family projects for the second month in succession.
No data releases
The main focus in this session is G20 meetings to be held during the following two days. No other fundamental events of significant or intermediate importance are scheduled for today.
GBP/USD returns to 1.39
The GBP/USD exchange rate showed high volatility on Friday. It began the day with minor appreciation prior to falling 0.56% after a US data release mid-session. This three-hour decline was stopped by the 200-hour SMA near the 1.39 mark. The Pound's subsequent movement was stranded between this moving average and the 55– and 100-hour SMAs.The rate might still edge lower down to the bottom boundary of a three-week channel. A subsequent fall is expected to be limited by the 200-hour SMA at 1.39. Technical indicators are generally bullish for the following trading session, thus favouring a price increase towards the 1.40 area where the senior channel is located.
Meanwhile, G20 meetings are to dominate the political and economic environment during the following two days.
Hourly chart
Contrary to expectations, the 55-day SMA has managed to support the GBP/USD exchange rate for the last two weeks. The pair failed to breach this line on several occasions.
It is expected that the rate returns for a re-test of this moving average, the weekly S1 and the 61.80% Fibonacci retracement circa 1.3830 during the first part of this week. The pair could continue trading along this line, thus pointing to a period of appreciation.
Daily Chart
The SWFX market sentiment has turned slightly bullish with 51% long positions, compared to market equilibrium in the previous session. Moreover, 54% of pending orders are to buy the Sterling (+1%).
The market sentiment of OANDA is bearish with 51% of its clients holding short positions. Saxo Bank clients have increased their bearish sentiment by one percentage point, thus currently standing at 57% short positions.
Spreads (avg, pip) / Trading volume / Volatility