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Economic data from the U.K. came in all green today, so I’m looking at this opportunity to catch Guppy’s uptrend!
Do you think this ascending channel will hold?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.K. Dec Rightmove HPI printed 2.1% m/m slump in house prices
China removes official COVID tracking app
Japanese Nov preliminary machine tool orders fell 7.8% y/y, following previous 5.5% drop
U.K. economy expanded 0.5% m/m vs. 0.4% forecast in Oct
U.K. construction output accelerated from 0.4% to 0.8% m/m in Oct
U.K. goods trade deficit narrowed from 15.7B GBP to 14.5B GBP in Oct
U.K. industrial production flat in Oct vs. projected 0.1% m/m dip
U.K. Oct manufacturing production advanced 0.7% m/m after previous flat reading
BOC Governor Macklem’s speech at 8:25 pm GMT
Australian Westpac consumer sentiment index at 11:30 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: GBP/JPY
GBP/JPY 1-hour Forex Chart
Things ain’t lookin’ so glum for the U.K. lately!
October data turned out much better than expected, as the economy reported a pickup in industrial production and overall growth.
In that case, GBP/JPY might be poised to resume its climb after it gathers more buying energy around nearby support levels.
The pair is already testing the 50% Fib near the mid-channel area of interest, and a bounce back to the swing high at 168.00 or channel top might follow.
A larger pullback could still test the 61.8% Fib that’s closer to the ascending channel support at the 167.00 handle.
Technical indicators seem to be hinting at a continuation of the climb, as the 100 SMA is above the 200 SMA.
Stochastic has a bit of room to move south before reflecting exhaustion among pound bears, but the oscillator is inching closer to oversold levels.
There’s not much in the way of top-tier releases in the next trading sessions, so market players will have to take their cues from market sentiment.
So far, the mood has been pretty upbeat now that China is ditching its official COVID tracking app. Just make sure you stay on your toes in case risk-taking shifts ahead of the FOMC decision later in the week!
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