Home Event GBP can go bearish amid release of important data by the US

GBP can go bearish amid release of important data by the US

05.07.2018

Tool: GBPJPY

Position: Buy

(1 ratings, average: 5,00 of 5)

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Yesterday, during the entire trading session, GBP had been showing growth amid strong UK’s data. Today it continues to strengthen against the main currencies. It is worth to remind, yesterday, new PMI for service sector was published. The index has increased and is estimated at 55.1 — the highest level since October. The indicator exceeded all expectations of analytics and economists and favourably impacted GBP’s dynamics. Today, we can see the GBP’s correction is due to a couple of factors. First, good news regarding the UK’s economy recovery allowed the bulls to get gains — the strengthening was palpable, and the fixation and long positions’ closing is quite probable today. Second, investors are anticipating the protocols’ publication of the Fed’s committee — the event that will significantly increase volatility of the entire market. In addition, the third reason is the Friday’s US job market statistics, which is destined to become the main driver of the USD movement.

Let’s take a look at the technical analysis of GBP/JPY.

Time M15.

The 5-wave selling structure is being formed. I recommend to search for opening opportunities for short postions after the fifth height formation and the fixation of the price under the construction of the bearish wave-treadline.

Take-profit is set at 146.13.

Profit target is around 25 points.

Stop-loss will be set below the fifth height after its formation.

I recommend to start a breakeven at 146.17.

It is worth to remind that we open orders only when the price reaches its target point and manages to fix under the support treadline of the selling structure. If the price fails to be fixed and takes a turn, we will look for new long position’s opening opportunities for the pair with a target to sell up to 146.13.

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GBP can go bearish amid release of important data by the US

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