- 58% of pending orders in the 100-pip range are to SELL
- 51% of open positions are to BUY the Pound
- Rate faces resistance support circa 1.3420
- Upcoming events: US Unemployment Claims
The US private sector created 190K jobs in November, down strongly from the prior month, but in line with projections, the ADP report indicated, ahead of more comprehensive the US Labour Departments figures to be issued on Friday.
Meanwhile, another data showed the revision of the US unit labour costs, which was at an annualised 0.2% rate in the Q3, compared to the initially reported 0.5% rise.
Quiet session
The only fundamental event scheduled for this session is the US Unemployment Claims at 1330GMT. Given that this is a weekly data release, no significant effect on the market is expected.
GBP/USD struggles to bypass monthly PP
In line with expectations, the overall optimism related to progress made on tax reform and decreased probability of a government shutdown continued to push the cable downwards.
Although the pair has crossed the 200-hour SMA, the further plunge was temporarily stopped by the monthly PP at located at the 1.3372 level. But since information background remains positive and the currency rate is located within junior descending channel, it is expected to continue moving to the bottom towards the 1.3340 mark.
In any case, an active surge is unlikely as northern side became protected by a combination of the weekly PP, the 55- and 200-hour SMAs. The only factor that might break the above resistance would be political news especially the one that are related to Brexit.
Hourly chart
It seems that the Pound has begun trading in a new wave down against the Greenback, as it is currently trading in a three-month descending channel. In case the current sentiment continues to prevail, traders might see a medium-term decline.
In this session, however, the pair is stranded between the weekly and monthly PPs. Yesterday's bearish momentum has declined; thus, it is likely that the latter provides a strong support area.
In case a breakout south occurs, the Pound should not fall below the 1.3340 mark.
Market sentiment largely bearish
The SWFX market sentiment has turned bullish on Thursday, as 51% of open positions are currently to buy the Sterling. Meanwhile, pending orders are at equilibrium.
OANDA market sentiment is bearish, as 54% of open positions are short (-3%). Saxo Bank clients share the same sentiment with 62% short positions (+2%).