- 57% of pending orders in a 100-pip range are to buy the pair
- 68% of traders are bullish on the Pound
- Significant support lies circa 1.2870
- Upcoming Events: UK Manufacturing PMI, US Average Hourly Earnings m/m, US Non-Farm Employment Change, US Unemployment Rate, US ISM Manufacturing PMI, US Revised UoM Consumer Sentiment
The National Association of Realtors revealed that pending home sales in the United States fell 0.8% over the month of July, as the property market kept facing hurdles form a limited supply of available houses, which pushed prices up.
The report suggested that sales would not break out in the coming months, as inventories are unlikely to improve significantly, while higher property prices are set to continue outpacing wage growth further, causing more strains on first-time buyers.
US in focus
The economic calendar on Friday includes various important data releases. The day will start with the UK publishing Manufacturing PMI for the month of August at 0830GMT. Subsequently, the US Bureau of Labor Statistics is set to release monthly Average Hourly Earnings, US Non-Farm Employment Change and Unemployment Rate at 1230GMT. Finally, the US Institute for Supply Management is to publish Manufacturing PMI and the University of Michigan – Revised Consumer Sentiment at 1400GMT.
GBP/USD trades in limbo
As it was projected, in the first half of the previous trading day the currency rate had easily plunged to the weekly PP at 1.2858, using barrier-free area on its way. However, by the end of the day the Pound has already managed to restore all lost positions and confirmed an existence of junior descending channel. As a result, today the exchange rate is expected to keep moving in the southern direction in an attempt to reach the 200-hour SMA near 1.2858. However, there is a need to remember that release of information on the UK Manufacturing PMI as well as the US Average Hourly Earnings and Non-Farm Employment Change might significantly alter the above scenario, depending on the result.
Hourly chart
Despite being pressured by bears on Thursday, the rate closed with slight gains near the 1.2930 mark. The rate opened this session between the 55- and 100-day SMAs; however, strong downside risks may push the rate below the latter. The next daily support is the weekly PP at 1.2858. Meanwhile, the 55-day SMA is reinforced by the weekly R1, thus providing a strong upside barrier.
Daily chart
Market sentiment slightly bullish
The bullish GBP/USD sentiment dominates the market, as 68% of open positions are long (+1%). Meanwhile, pending orders are almost at equilibrium, with 51% of orders being long (-1%).
OANDA traders have turned slightly bullish on the pair, as the number of open positions is 51% (+1%). Meanwhile, traders at Saxo Bank remain bearish with 60% long positions (-2%).