- 62% of pending orders in the 100-pip range are to BUY the Sterling
- SWFX market sentiment is 61% bullish (+1%)
- Economic calendar review at 12:00 GMT
On Monday morning the Pound traded near the support of the weekly pivot point at the 1.3230 mark against the Greenback. Meanwhile, Dukascopy analysts have discovered a junior ascending channel pattern on the hourly chart.
The British Pound strengthened against the Greenback, following the UK Interest Rates data release on Thursday. The GBR/USD currency pair gained 54 pips, or 0.41%, to continue fluctuating in the 1.3200 area.
The Bank of England (BOE) released Interest Rates data that came out in a line with a forecast of 0.50% in May, and stayed unchanged from the previous period.
Jeavon Lolay of Lloyds Bank says: "The surprising switch by Bank of England chief economist Haldane to support an immediate rate hike puts August firmly on the table. There will be even more interest in what governor Carney says tonight at the annual Mansion House speech."
Start of the week webinar
The day's economic calendar is empty for macroeconomic data release traders. However, there is another event, where to invest your time.
At 12:00 GMT Dukascopy Analytics will host this week's start of the week webinar. During the webinar analysts will explain this week's economic calendar events and take requests for data release covers.
GBP/USD meets strong support cluster
The Pound has reached the targeted support cluster near the 1.3220 mark against the US Dollar. In addition, during the move the pair has revealed a new medium term pattern. Namely, a channel up pattern was spotted by Dukascopy analysts on Monday morning.During the morning hours of Monday's trading session the pair had rebounded against the mentioned support cluster. However, the rate still faced the resistance of the 200-hour SMA near the 1.3260 level.
If the SMA's resistance gets broken, the Sterling should begin a surge that would last as high as the 1.3350 mark
Hourly chart
By reviewing the daily chart of the GBP/USD pair it was discovered that there exists a descending channel pattern that has been in action since the middle of April.
Most recently its resistance line paused the surge that has been reviewed on the hourly chart. Due to that reason the need to watch the support levels near the 1.3230 mark
Daily Chart
The SWFX market sentiment is bullish and stands at 61% long positions (+1%). Meanwhile, 58% of pending orders are to buy the pair (+5%).
It can be deducted from these numbers that retail traders are clearly expecting a surge of the Pound in the near term.
The market sentiment of OANDA is strongly bullish, as 68% of its traders are holding long positions (+1%). Saxo Bank clients are likewise bullish with 61% long positions (+1%).
Spreads (avg, pip) / Trading volume / Volatility