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One market we’ve been keeping an eye on this week is the GBPUSD (pound dollar or ‘cable’) pair. There are two events this week which will, likely, get market participants involved:
- The UK Parliamentary Elections are taking place today in the UK. Any uncertainty around the outcome of the election or a surprise outcome will impact the pound.
- Non-Farm Payroll figures are released in the United States on Friday and this may impact all USD pairs including GBPUSD.
For now, this market is trading within the range set by yesterday’s price action; with resistance at 1.5290 and support at around 1.5150. So, the buyers and the sellers are in broad agreement with one another and price is moving sideways. The events of the next few days and any uncertainty around the outcome of the election will tip the balance one way or the other, we will get market flow and GBPUSD will likely move out of this range.. Fast…
So, where are our users positioning themselves coming into the end of this week? The picture gives an indication of the opinion of the crowd in SparkProfit for this week on GBPUSD.
What the crowd thinks of GBPUSD
We have observed buying pressure from the start of the week in SparkProfit on GBPUSD. The green line indicates the amount of bulls in the market and the red line shows the bears. The white line is a probabilistic signal based on the total long/short orders and compares the long and short orders in the game to randomly generated trades. That’s a mouthful! The short story is that this line gives the long or short bias of our players compared to trades from a room full of monkeys trading randomly.
The buy flow increased from the start of the week and was a leading indicator of the breakout to the upside in this case. The crowd is still net long but buy orders have not been increasing much over the last 24 hours as traders adopt a wait and see approach.
Its hard to know which way this is going to go but the chart below presents some levels to monitor which may give some opportunities to trade from on bounces or, if they break, retests.
Levels to watch for bounces or retests.
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Which ever way you think GBPUSD is going to go, you can play GBPUSD risk free with SparkProfit.
Please note our disclaimer on all of this.