Market Outlook and Analysis (Sept2019 Week3)
Currency Pair: GBPJPY
Fundamental Analysis – GBPJPY
In the last trading week, the GBP was the best performer and the JPY closed off the week the weakest. The both the UK GDP numbers (0.3% vs the expected 0.1%) and the manufacturing production (0.3% vs the expected -0.3%) came in above expectations.
The British Pound strength came from mainly these reasons:
- the chances of a ‘No-deal’ Brexit on 31 October seems to have receded
- a general election looks more a reality
- an extension to Article 50
Technical Analysis – GBPJPY
GBPJPY D1 Chart – Bearish Bat Pattern Completion at Sell Zone.
The pair completed the Bearish Bat Pattern (at a Sell Zone) with a very strong bullish candle. This throws caution into the air as the indicators also hinting a string bullish move. The ideal case would be to see how the price reacts to the Sell Zone.
GBPJPY H4 Chart – Waiting for a reversal at the Sell Zone
The idea scenario we would like to see before shorting this pair will be for it to confirm a reversal pattern at the Sell Zone. At this moment there are no signs of any potential reversals.
Calling out to those of you who are based here in Singapore. We are running a 3-hr Workshop on the 17th Sept (7pm). For this session, we are joined by Ms Gina Chua, a Senior Financial Consultant, to share about building your Financial portfolio.
Register HERE today, bring your friend along too.