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The U.K. is printing its labor market numbers! What are traders expecting and how can it affect Guppy’s recent upswing?

I’m looking at a potential retracement on the 4-hour time frame.

Before we talk setups, though, you should take a look at the top headlines from the previous trading sessions:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Japan’s Economy Watchers sentiment survey at 5:00 am GMT
  • U.K.’s labor market numbers at 7:00 am GMT
  • France’s industrial production at 7:45 am GMT
  • Eurozone ZEW economic sentiment at 10:00 am GMT
  • German ZEW economic sentiment at 10:00 am GMT

What to Watch: GBP/JPY

GBP/JPY 4-Hour Forex Chart
GBP/JPY 4-Hour Forex Chart

In case you missed it, risk-takers had a field day after Pfizer shared the 90% success rate of its latest vaccine research prospect. GBP/JPY shot higher at the news, enough to reach the 139.00 area before hitting resistance.

But that was a few hours ago. Asian session traders had more time to digest the news and are a bit more skeptical about the logistics and longevity of Pfizer’s vaccine.

The profit-taking vibe can get traction in the next couple of hours when the U.K. prints its October labor market numbers. Word around is that we could see a higher unemployment rate but fewer job losses and higher average earnings.

Unless the numbers really surprise to the upside, then traders could shrug off strong numbers in favor of pricing in the U.K.’s latest lockdown measures.

Weak jobs data could drag Guppy back down to the 137.50 minor psychological handle near the 38.2% Fib and previous high.

An upside surprise, on the other hand, could propel GBP/JPY to new November highs and even push it firmly above the 140.00 zone.