- 61% of pending orders in the 100-pip range are to BUY
- 56% of open positions are bullish (+3%)
- Notable support located circa 1.3300
- Upcoming events: CB Consumer Confidence and Pending Home Sales
The Sterling is continuing to trade against the Dollar in a symmetrical triangle pattern. Due to after-Christmas inactivity the pair is not expected to make a breakout today.
The UK current account deficit was at £-22.8B representing 4.5% of GDP in the third quarter. According to the market expectations, deficit is set to narrow as the depreciation of the British Pound would encourage exports. Data also showed that UK consumers endured another tough period in the quarter, as their spending rose at the weakest yearly pace since 2012. The ONS said that the UK GDP was confirmed at 0.4% on a quarterly basis, while expanding 1.7% year-over-year.
The only notable event of this post-holiday week will happen today at 15:00 GMT with release of information on American consumers’ sentiment by the Conference Board Inc.
GBP/USD does not succeed to climb above 1.3400
Despite adoption of tax reform and release of various macroeconomic data, the British Pound is continuing to trade against the Dollar in a two-week long symmetrical triangle whose upper boundary simultaneously represents the slope of a larger falling wedge pattern. Because of an empty economic calendar as well lower liquidity the cable is expected to remain within the above patterns today. In the meantime, an allocation of pending orders suggests that traders are rather eager to acquire the Sterling, which is contrary to the generally bearish market sentiment. From daily chart perspective, it looks like the pair will make inch higher from the triangle due to support set up by the weekly and monthly PP located around the 1.3370 mark.
Hourly chart
On daily chart the cable is also trading in symmetrical triangle pattern. An allocation of the weekly and monthly PP suggests that the pair eventually might break to the north.
Daily chart
