GBP/USD Rallies on News
- The GBP/USD Trades Higher on Durable Goods Orders Miss
- Bullish Breakouts Began over 1.4542
- SSI Reads Negative at -1.23
(Created using Marketscope 2.0 Charts)
The GBP/USD continues to trade higher, with the US Dollar selling off against most major currencies. This morning’s move was predicated by US Durable Goods Orders (Mar P) missing expectations, which were set at 1.9%. The actual figure came in at .8%, causing the US Dollar to sell off against the Pound. It should also be mentioned that there is more event risk on the horizon. Later today, at 13:00 GMT, US Consumer Confidence numbers are being released. Expectations for this event are set at a reading of 96.00. With the increased volatility seen earlier in the day, these figures may also have the potential to move the market.
Currently the GBP/USD is trading over today’s R4 pivot, which is displayed in the graph above at a price of 1.4542. With today’s pivot range measuring 64 pips, the pair has already exceeded initial bullish targets found using a 1X range extension. With the high of the day currently at 1.4618, traders looking to join the trend may wait for a retracement or plan for the pair’s next breakout. In the event of a reversal later today, traders should watch for the GBP/USD to fall back below the previously mentioned R4 pivot. This would open the pair to potentially trade back inside of today’s pivot range starting with the R3 Camarilla pivot found at a price of 1.4510.
Find out the latest positioning totals with DailyFX’s sentiment page
SSI (Speculative Sentiment Index) for the GBP/USD currently reads at -1.23. This number has flipped negative from last week’s reading of +1.76. While this number is significantly negative, a continued move higher may be validated if SSI reaches an extreme of -2.0 or lower. In the event of a reversal later today, traders may look for SSI to push back towards more neutral values or possibly flip to a positive reading.
To Receive Walkers’ analysis directly via email, please SIGN UP HERE
See Walker’s most recent articles at his Bio Page.
Do you know the biggest mistake traders make? More importantly, do you know how to overcome the biggest mistake? Read page 8 of the Traits of Successful Traders Guide to find out [free registration required].
Contact and Follow Walker on Twitter @WEnglandFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.