- 51% of pending orders in the 100-pip range are to SELL the Pound
- 52% of open positions are short
- The nearest resistance is set by the 55- and 100-hour SMA at 1.4050
- Quiet session in terms of fundamentals
In case the bearish sentiment takes over the market, the strong support of the 55-, 100- and 200-hour SMAs and the weekly PP is likely to stop a fall below 1.4050.
The Bureau of Labor Statistics revealed much lower-than-expected data in non-farm employment change in March. However, there was an employment growth of 103K, it decreased more than three times from 326K in the prior month. Without non-farm employment change there were two more data sets that came out simultaneously. Average hourly earnings stayed in line with the forecast; however, unemployment rate came out to be 4.1%, which was 0.1% more than expected.
Quiet session
The economic calendar is empty in this session, so the pair might show low volatility today.
GBP/USD calm after surge
The first part of Friday's trading session was spent with no massive changes to the Pound's positioning against the US Dollar, as the pair remained fluctuating slightly above the monthly PP at 1.40.High volatility was introduced mid-session when the US released sluggish employment data. As a result, the Sterling surged 85 pips against its American counterpart within a few hours and breached the 55–, 100– and 200-hour SMAs along the way. This massive bullish momentum was followed by a narrow movement sideways during the Asian session which occurred near the upper boundary of a breached short-term channel up.
It is expected that the pair is tended south in this session just to ease the aforementioned up-move. This fall, however, is likely to be limited by the SMAs and the weekly PP at 1.4050.
Hourly chart
The Sterling has been appreciating gradually against the US Dollar since the beginning of March – the movement which has been guided by the 55-day SMA.
Technical indicators on the daily time-frame are gradually moving south, so a breakout of the 55-day SMA is expected within the following weeks. This scenario is likewise supported by the pair's downward-sloping movement in two long-term channels.
A breakout of the 55-day SMA should push the Pound towards the 100-day moving average currently located near the 1.38 mark.
Daily Chart
The SWFX market sentiment is once again bearish, as 52% of open positions are short in this session. Meanwhile, the number of pending orders is at equilibrium.
OANDA traders remain bearish on the Pound with 51% of their open positions being short (-5%). Saxo Bank is likewise bearish with 57% of its clients holding short positions (+3%).
Spreads (avg, pip) / Trading volume / Volatility