- 52% of pending orders in the 100-pip range are to SELL
- SWFX market sentiment is 53% bearish (+1%)
- Possible trading range 1.4250/1.4150
- Upcoming events: CB Consumer Confidence, FOMC Member Bostic to speak
The Census Bureau reported that the country's core durable goods orders came in better than expected, posting 1.2% uptick in February and surpassing the forecast of a 0.5% surge.
One of the main reasons for this rebound was the increase in shipments of core capital goods. Moreover, non-defense capital goods orders recorded the biggest increase in five months. This surge indicates that business spending is set to continue.
CB Consumer Confidence
The US Conference Board will release its consumer confidence index at 1400GMT. Analysts forecast a reading of 131.2, compared to 130.8 during the preceding month. Meanwhile, the President of the Federal Reserve Bank of Atlanta Raphael Bostic is due to speak at the Hope Global Forum's Annual Meeting at 1500MT.
GBP/USD calm on Tuesday morning
The inability of the US Dollar to gain momentum on Monday had positive impact on the GBP/USD exchange rate. The morning and evening sessions did not introduce significant changes to the overall price level, while mid-day was dominated by bulls.The pair remains bullish for this week, and it seems that traders might target the 2017/2018 high of 1.4313. In case this level is breached, the current surge is expected to continue. This move is unlikely to day, as bulls still need to gather the necessary momentum to do so.
Given that technical indicators are gradually moving away from the overbought area might suggest either consolidation or a minor decline today. In case no fundamentals erase this assumption, this movement south should not exceed the 55– and 100-hour SMAs near 1.4150.
Hourly chart
The Sterling has been appreciating gradually against the US Dollar since the beginning of March – the movement which has been guided by the 55-day SMA. It seems that the pair might still show some upside potential towards the 1.44 area this week.
Daily Chart
The SWFX market sentiment remains bearish with 53% short positions (+1%). Meanwhile, 52% of pending orders are still to buy the Sterling (-1%).
The number of short positions of OANDA traders has increased to 54% in this session (+3%). Saxo Bank clients have likewise improved their bearish sentiment by six percentage points today, thus currently standing at 60% short positions.
Spreads (avg, pip) / Trading volume / Volatility