The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial.
How to trade GBP/JPY after the election
2019-12-17 • Updated
SELL 144.90; TP 144.10; SL 145.10
GBP/JPY is correcting down after the excessive advance that it made on the news that Boris Johnson’s Conservative Party has won the UK election. Last week the price managed to overcome the 200-week MA at 143.60 and 78.6% Fibo retracement of March-August decline at 144.00. Now these levels will act as support for the pound.
On the D1, we see bearish divergence between the price and the Awesome Oscillator. It means that the latest advance was too fast and that the pair may return to lower levels where buyers will be able to regroup.
On the H4, GBP/JPY is within a descending wedge. The fall below its support around 144.95 will open the way down to 144.00. In the meantime, the return above the upper border at 146.20 is needed to allow the pair to retest the recent highs that are just below 148.00.
Here we go again, my friends. It’s time to look critically into the future of what trading opportunities September might have in store for us. As always, it is essential to note that the views expressed here are mine and should not be considered financial advice without proper examination.
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