Can the pound find some support from today’s releases?
Before we check out Cable’s setup, you should first know the headlines that moved currencies during the Asian session:
Fresh Market Headlines & Economic Data:
- New Zealand’s manufacturing sector showed some signs of recovery in May
- Japan’s industrial production revised lower in April
- U.S. oil prices drop over 8% as resurgence in coronavirus cases dulls demand outlook
- Asia stocks slide as coronavirus fears return
- Risk currencies slide as recovery optimism faces reality check
Upcoming Potential Catalysts on the Economic Calendar:
- U.K.’s monthly GDP at 6:00 am GMT
- U.K.’s manufacturing production at 6:00 am GMT
- U.K.’s industrial production at 6:00 am GMT
- Italy’s quarterly unemployment rate at 8:00 am GMT
- Eurozone’s industrial production at 9:00 am GMT
What to Watch: GBP/USD
GBP/USD looks ready for a breather after breaking several trend support levels in the last trading sessions.The 1.2650 is a good area to watch since it’s near the 200 SMA, previous support level, and a 38.2% Fib on the 1-hour chart.
If today’s lower-tier U.K. releases print in favor of the pound, then Cable can maximize its average daily ATR and hit the potential break-and-retest levels that we’re watching.
But if London session traders latch on to the risk aversion theme, then we could see GPB/USD make new lows closer to the 1.2500 previous areas of interest.