Got another set of U.S. inflation figures comin’ right up!
Will the PPI readings allow this area of interest on Cable to hold?
Before moving on, ICYMI, today’s Asia-London session watchlist checked out the potential support zone on GBP/AUD ahead of the U.K. GDP release. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
- Canada to create international vaccine passport in months
- New Zealand quarterly inflation expectations up from 2.05% to 2.27%
- Australia’s MI inflation expectations slip from 3.7% to 3.3%
- Canberra to go into lockdown mode starting today
- Asian shares tumble as Delta variant concerns persist
- U.K. economy expanded 4.8% as expected in Q2
- U.K. manufacturing production up 0.2%, industrial production slumped 0.7%
Upcoming Potential Catalysts on the Economic Calendar:
- U.S. headline and core PPI at 12:30 pm GMT
- U.S. initial jobless claims at 12:30 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: GBP/USD
This textbook break-and-retest trend setup on Cable is just too hard to pass up!
The pair is still hanging out below its short-term falling trend line and the support-turned-resistance zone around the 1.3900 handle.
Are sellers about to return right here?
The area of interest happens to be spanned by the 50% to 61.8% Fibonacci retracement levels, as well as the dynamic resistance levels at the moving averages.Also, the 100 SMA is below the 200 SMA to confirm that the ceiling is more likely to hold than to break. In that case, GBP/USD could soon find its way back to the swing low near the 1.3800 mark or lower!
To make things sweeter for bears, I’m seeing a divergence between the lower highs of price action and the higher highs of Stochastic.
Better watch out for the mid-tier U.S. reports coming up, including the PPI figures and the initial jobless claims!
