GBP/JPY Completes 61.8% Fibo While The U.K’s Avg Earnings Disappoints!

One of the most awaited economic events of today is already out now. I'm speaking about the U.K. labor market figures. Earlier today...

Written by: Arslan Butt • Tuesday, August 14, 2018 • 1 min read

• Last updated: Tuesday, August 14, 2018

One of the most awaited economic events of today is already out now. I’m speaking about the U.K. labor market figures. Earlier today, in our Aug 14 – Economic Event’s Brief, we spoke about the expectations from the U.K. employment report. I must say, that failed to surprise the market.

GBP/JPY - 4 Hour Chart

U.K. Employment Report

The average hourly earnings plunged to 2.4% from 2.5% previously.
The jobless claims also fell short of expectations. Economists were expecting it to be 2.3k while the actual figure showed a rise of 6.2K.
Lastly, the unemployment rate is down from 4.2% to 4%. It tried to compensate the negative data but looks like the investors are confused on mixed figures.

Technically speaking, the GBP/JPY has already completed 61.8% retracement at 142.250. The same level is working as a solid hurdle for the pair. Taking a look at the 4- hour chart, you can see Japanese cross has formed a bearish candle exactly after testing 61.8% retracement level.

Is it a signal of bearish reversal?

Well, time will tell. But it’s worth taking a risk with a small sell position below 142.650 to target 141.852. Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.