- 57% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 64% bullish (-2%)
- Upcoming fundamental events: US CB Consumer Confidence
The Pound still pressured lower by the 55-hour SMA.
The British Pound weakened against the Greenback, following the UK Second Estimate GDP data release on Friday. The GBP/USD currency pair lost 2 pips, or 0.01%, to continue fluctuating in the 1.3362 area.
The Office for National Statistics and UK Finance simultaneously released 4 data sets, where the most important or Second Estimate Gross Domestic Product data came out in line with the economists forecast of 0.1%, which was one of the main reason for currency price to stay flat.
Prelim Business Investment data came out lower-than-expected of negative 0.2%, compared to 0.3% in the previous period. Index of Services stayed in line with the forecast and High Street Lending came out just a little bit better-than-expected.
CB Consumer Confidence
The only fundamental data release in this session is the Consumer Confidence published by the US Conference Board at 1400GMT. Analysts expect a slight decline month-on-month down to 128.2.
GBP/USD reverses from 1.33
Monday's trading session did not introduce significant changes to the overall price level of GBP/USD, as banks in both the UK and the US were closed. Thus, the pair remained stranded between the 55-hour SMA and its six-month low at 1.33 on Tuesday morning.It is likely that the rate tries to approach the 1.36 mark within the following trading sessions. Strong appreciation today might be restricted by the combined resistance of the 55– and 100-hour SMAs and the weekly PP circa 1.3360. In case no strong upside momentum drives the Pound today, the 200-hour SMA at 1.34 should not be surpassed.
The 55-hour SMA might also pressure the rate lower past its six-month low; strong decline, however, should be limited near the 1.3250 mark.
Hourly chart
The Sterling has plunged 7.28% against the US Dollar since mid-April. Despite lingering near the 200-day SMA for a couple of days, downside risks prevailed and pushed the rate as low as the 1.33 mark early on Monday.
Technical indicators are located at historic lows. Thus, a recovery should occur in the nearest time. The nearest support is set by the monthly S2 at 1.3290.
Daily Chart
The bullish SWFX market sentiment is strongly bullish with 64% of open positions being long today (-2%). Meanwhile, 58% of pending orders remain to sell the Pound (-3%).
The market sentiment of OANDA traders is bullish, as 62% of them are holding long positions (-3%). Saxo Bank clients are likewise bullish with 61% long positions (+2%).
Spreads (avg, pip) / Trading volume / Volatility