- 63% of pending orders in the 100-pip range are to SELL the Sterling
- SWFX market sentiment is 66% bullish (+1%)
- Bank Holiday in the US and the UK
Bullish sentiment should prevail today; however, gains should not surpass the 1.3380 mark.
The British Pound weakened against the Greenback, following the UK Second Estimate GDP data release on Friday. The GBP/USD currency pair lost 2 pips, or 0.01%, to continue fluctuating in the 1.3362 area.
The Office for National Statistics and UK Finance simultaneously released 4 data sets, where the most important or Second Estimate Gross Domestic Product data came out in line with the economists forecast of 0.1%, which was one of the main reason for currency price to stay flat.
Prelim Business Investment data came out lower-than-expected of negative 0.2%, compared to 0.3% in the previous period. Index of Services stayed in line with the forecast and High Street Lending came out justa little bit better-than-expected.
Calm day
This session is expected to be uneventful in terms of data releases, as banks in the US and the UK are closed due to holidays.
GBP/USD reverses from 1.33
The 55-hour SMA continued to provide downward pressure for GBP/USD as a result of which the Pound fell down to a fresh six-month low at 1.33 late on Friday.The Asian session today began with bullish momentum which pushed the rate towards the combined resistance of the 55– and 100-hour SMAs and the weekly PP near 1.3365. The rate might hinder near this resistance for a while prior surpassing it and approaching the 200-hour SMA at 1.3450.
Meanwhile, traders could be reluctant to push the rate below the psychological 1.33 mark. Given that there is a bank holiday both in the UK and the US today, the rate should not introduce large price changes. By and large, the general direction should be northwards this week, thus allowing bulls to strengthen the Pound and thus move it away from its 2018 low.
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 (+1%). Meanwhile, 61% of pending orders remain to sell the Pound (+9%).
The market sentiment of OANDA traders is strongly bullish, as 65% of them are holding long positions (+4%). Saxo Bank clients are likewise bullish with 59% long positions.
Spreads (avg, pip) / Trading volume / Volatility