While the week ahead isn’t jam-packed with economic data, there is certainly still some important events taking place that will likely move forex markets.

The highlight of the week will again be out of the US as Jerome Powell is set to testify before the congressional Joint Economic Committee in Washington on Wednesday and the House Budget Committee on Thursday.

Powell will likely reiterate some of the key themes that we’ve been hearing out of the FOMC of recent times, but given the state of monetary policy at the moment, this could be a big market mover.

It is widely expected that interest rates will not be falling any further after a series of cuts. But what exactly the Fed has in mind is still uncertain.

Today, the main focus will be in the UK as we get the latest update on GDP. There is some risk, that the UK and Germany will slip into a recession, which is two consecutive periods of negative economic growth.

As such, the GBP/USD is clearly at risk of nosediving on a less than impressive number.

Forex Signal Update

The FX Leaders Team finished with 9 wins from 14 signals giving us a 64% win rate over the course of the trading week.

GBP/USD – Pending Signal

The GBP/USD looks to now be at risk of falling out the bottom of this support level at 1.2800 if it cannot hold. Given we have GDP today, expect some big moves here.

USD/JPY – Active Signal

The USD/JPY is continuing to push higher of recent times and we are long here on the pullback hoping for a continuation of the current trend.

Cryptocurrency Update

BTC has fallen out the bottom under the $9,000 but has managed to bounce back in what looks like a false break out.

Price got down to around the $8,700 level before the buyers once again stepped up. Given this happened during a period of low liquidity, it’s not surprising that we saw a false break. That can often happen outside of major trading hours.

However, we can’t ignore the fact that this test was well and truly on the cards here. We had been looking for a test of that level all week and eventually got it.

On Monday, we will need to see if this bounce can hold when the big traders come back to their desks to start the new week.