- 54% of pending orders are to buy the pair
- 62% of traders are bullish on the Pound
- Gains could be capped near 1.3180
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Upcoming Events: US Advance GDP q/q, US Advance GDP Price Index q/q, US Employment Cost Index q/q, US Revised UoM Consumer Sentiment and Inflation Expectations, FOMC Member Kashkari Speaks
Wednesday's preliminary estimate of the UK's gross domestic product for the second quarter matched analysts' estimates, but signalled that its expansion has lost some momentum in relation to the previous year. This was reflected in an instant fall of the GDP/USD exchange rate, which was trading at 1.3026 just after the data were published.
The Office for National Statistics reported that Britain's GDP rose 0.3% in the second quarter of 2017 as anticipated, while the yearly growth slowed from 2% to 1.7% in the same period. The UK services sector, which makes up the largest part of the economy, remained as the main contributor to the growth, offsetting weakness in manufacturing and construction.
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US Advance GDP for Q2 in focus
All heads in this session will be certainly turned towards the United States which is to release a report on Advance GDP for the second quarter of 2017 along with its Price Index at 1230GMT. Likewise, the US is to publish quarterly Employment Cost Index and revised Consumer Sentiment from the University of Michigan at 1230GMT and 1400GMT, respectively. Finally, the day will finalise with a speech by Neel Kashkari, the President of the Federal Reserve Bank of Minneapolis, at 1720GMT.
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GBP/USD remains in up-trend
After being located near the upper wedge boundary on Thursday morning, GBP/USD was pressured lower and consequently pushed through the weekly R1 and the 55-hour SMA down to the 1.3060/85 area. The up-trend, however, was not reached, thus leaving the rate above the 100-hour SMA. The increasing steepness of the up-trend suggests that the Pound has been affected by solid upside risks that may result in an breakout of the wedge, especially if this trend-line is not breached in the upcoming trading sessions. The effect of US Advance GDP is yet to be seen; however, the rate is generally expected to remain above the 200-hour SMA which may be set as the bottom limit for today. From upside, however, weak US data may push the rate as high as the monthly R1 at 1.3177.
Hourly chart
GBP/USD keeps moving closer the upper boundary of an ascending wedge. Even though the pair was pressured to the downside on Thursday, it seems that bulls have taken a slight upper hand this morning. It is expected that the rate may approach once again the 38.2% Fibonacci retracement at 1.3146 or the weekly R1 located nearby at 1.3177. Meanwhile, the rate is supported by the 20-day SMA at 1.2986.Daily chart
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Traders return in neutral territory
Traders have not changed their bullish sentiment since yesterday, as the number of open positions remains to be 62% long. Moreover, 54% of pending orders are to buy the Sterling.
In contrast, traders at Saxo Bank are bearish on the pair, with 65% of traders holding short positions (+1%). Meanwhile, OANDA clients are likewise bearish on the pair, as 55% of all open positions are short.
Spreads (avg, pip) / Trading volume / Volatility