- 58% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 66% bullish (+2%)
- Upcoming fundamental events: ADP Non-Farm Employment Change, US Preliminary GDP q/q
The Pound tries to recover after a fall on Tuesday.
The Greenback weakened against the Eurozones's single currency, following the US CB Consumer Confidence data release on Tuesday. The EUR/USD currency pair gained one pip, or 0.01%, to continue fluctuating in the 1.1567 area.
The Conference Board Inc. released Consumer Confidence data that came out lower-than-expected of 128.0, compared to the 128.7 in the previous period.
"Overall, confidence levels remain at historically strong levels and should continue to support solid consumer spending in the near-term," Lynn Franco, director of Economic Indicators at The Conference Board, said.
US in focus
The United States is to release two important data sets in this session, namely, the ADP Non-Farm Employment Change and the Preliminary GDP for Q1Y2018 at 1215GMT and 1230GMT, respectively. The forecast for the latter remains at 2.3% on a quarterly basis.
GBP/USD fails to accelerate
The Pound was driven by downside risks against the US Dollar on Tuesday. The 55-hour SMA proved to be an unbreakable barrier for the rate, thus sending the Sterling past the psychological 1.33 level until support at the weekly S1 at 1.3232 was found.The pair has failed to breach this moving average on several occasions during the past two weeks which shows that the Pound generally remains under the bearish influence. Some downside potential is still apparent in the market. Even though technical indicators on the 1H chart are starting to recover, longer time-frames still lag behind. This suggests that gains could be limited today.
The nearest resistance that is expected to hold firm is set by the 55– and 100-hour SMAs at 1.33. Meanwhile, support is provided by the weekly S2 at 1.3165.
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 66% of open positions being long today (+2%). Meanwhile, 57% of pending orders remain to sell the Pound (-1%).
The market sentiment of OANDA traders is increasingly bullish, as 64% of them are holding long positions (+2%). Saxo Bank clients are likewise bullish with 63% long positions (+2%).
Spreads (avg, pip) / Trading volume / Volatility