- 55% of pending orders in the 100-pip range are to BUY
- 53% of open positions are bullish
- Rate faces significant support circa 1.3375
- Upcoming events: BOE Governor Carney to speak, US Existing Home Sales
The US single-family housing starts and building permits increased to the ten-year highs in November, providing a hopeful sign for the real estate market that was hindered by supply constraints.
The Commerce Department stated that in overall building permits were at a 1.298M unit rate in November, being put slightly down by a weaker permits for multi -family houses' construction. However, an increase in groundbreaking singe-family homes could contribute to GDP in the Q4.
BOE Governor to testify at 1315GMT
Two economic events should be mentioned in this session. The Governor of the Bank of England Mark Carney is due to testify on the November Financial Stability Report before the Treasury Select Committee at 1315GMT.
Meanwhile, the US is to publish its Existing Home Sales for the month of November at 1500GMT. This data release, however, is unlikely to affect the market significantly.
GBP/USD forms new triangle
Yesterday's plunge to the 1.3330 level with the subsequent return to the 1.3400 mark points out that fluctuations of the cable are framed by the minor symmetrical triangle pattern.
Theoretically, a combination of the weekly and monthly PP strengthened by the 55- hour SMA should a necessary support for a breakout to the top. However, previous trading session showed that traders are rather neglecting these technical indicators.
Accordingly, these ups and downs are likely to continue until the pair an impulse from some fundamental event, such as final adoption of tax reform by the Congress. In support of this assumption, the pending orders in 100-pip range are equally split between buys and sells.
Hourly chart
The Pound has been supported by the weekly and monthly PPs circa 1.3370 for the second consecutive day. In case no major events that could pressure the rate south are to occur, it is more likely that bulls try to recover some of its positions lost on Friday.
The nearest resistance is set by the weekly R1 at 1.3497.
Daily chart
The bullish market sentiment has slightly weakened on Thursday, as 53% of open positions are long (-1%). In addition, 53% of pending orders are to buy the Sterling (-2%).
OANDA traders remain bearish with 55% of open positions being short (+2%). Saxo Bank clients share the same sentimen, as short positions have stood at 57% for the third consecutive session.
Spreads (avg, pip) / Trading volume / Volatility