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Cable  makes it back to the daily watchlist, this time after a heavy economic calendar from the U.K. and a trend friendly setup on the charts. Check it out!

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto
DAX: 11005.79 +0.91%
FTSE: 7121.69 +0.71%
S&P500: 2712.30 +0.16%
DJIA: 25111.88 +0.02%
US 10-yr 2.665% +0.023
Bund 10-YR 0.116% +0.031
UK 10-YR: 1.177% +0.024
JPN 10-YR: -0.036% -0.019
Oil: 51.44 -2.43%
Gold: 1309.80 -0.66%
Bitcoin: 3602.13 -1.23%
Etherium: 121.38 +0.98%

Fresh Market Headlines & Economic data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Japan M2 Money Supply at 11:50 pm GMT
  • Australia Housing Finance at 12:30 am GMT (Feb. 12)
  • Australia NAB Business Conditions at 12:30 am GMT (Feb. 12)

What to Watch: GBP/USD

GBP/USD 1-Hour Forex Chart
GBP/USD 1-Hour Forex Chart

The U.K.’s Office for National Statistics just released a string of economic updates on the U.K., and let’s just say that it was not good. Almost every read–including monthly GDP, manufacturing and industrial production–were worse than both expectations and previous reads, another signal of a slowdown ahead.

The British pound took some punches on the news, but not too bad as these kinds of numbers were already expected given the Brexit situation and it’s now only down against the CAD and USD since the data set released.

With U.K. data being the only catalysts worth talking about for the Monday session and given its negative lean, I think Sterling weakness is one to watch, especially against the Greenback that’s had a strong run in the last week and is likely to see support if data outside of the U.S. continues to be downbeat.

Looking at the one hour chart above of GBP/USD, it’s pretty clear that the trend has been a friend to Cable bears. This chart will stay bearish until the market breaks above that downtrending pattern and minor area of interest around 1.2920. And with an average daily range of around 110 pips, there could still be more room to go to the downside with the pair down around only 50 pips from the week open.