Bullish Crossover In GBP/JPY – UK’s Factory Ouput Falls to Five Year Low
Arslan Butt • 1 min read
It’s been a good start to the day with winning forex trading signals on DAX and SPX. Whereas, our position in the GBP/JPY is floating in profit. Let’s see what’s going on in the market and how we expect to manage our positions…
Recalling FX Leaders June 11 – Economic Event Outlook, we are expecting a manufacturing production figure from the United Kingdom. It was expected to rise to 0.3% vs. -0.1% in May 2018.
Sentiment – Considering the forecast, the investors are trading the Sterling with bullish sentiment, at least until the release of data. Beware of the fact that our forex trading signal on GBP/JPY will also be influenced by this data. So, if you are already in, I would advise moving your stop loss to the breakeven point.
By the time I’m writing this, the U.K. has already released the data in contrast to the forecast. Manufacturing Production is out and the results seem to be against us. The figures slipped into negative territory by -1.4% instead of a rise of 0.3% which is quite disappointing for Sterling investors. In addition, the Industrial Production also missed the forecast and fell down to show the biggest monthly fall in over five years, knocking us out of the market in a blink.
Technically, the GBP/JPY is crossing the 50- periods moving average from the upside, violating the support level of 147.150. The RSI is also heading into the selling zone below 50. For now, I will be waiting for the market to test a strong support level of 149.800 or 146.500 in order to take another position.
Key Trading Level: 147.430