The Pound shines in Asia-Pacific despite its data
Today we have witnessed some shocking news that has affected the British Pound, the Japanese Yen and the Australian Dollar. Japanese GDP showed a positive correction, although not enough to meet expectations, while Australian unemployment rates came in positive but below expectations. On the other hand, in the European morning we were faced with negative UK GDP data, which fell short of expectations. It is clear that the Asia-Pacific (APAC) region is performing very well compared to Europe and in particular the UK which is experiencing corrections due to Europe's high indebtedness versus the Japanese and Australian tapering corrections which are causing both currencies to undercut the pound.
Focusing on the GBPJPY and GBPAUD crosses, both have followed very similar patterns from January through February 12. In addition, the RSI divergence shows oversold levels of 29-30%.
In the case of GBPJPY, it is currently recovering after breaking a triple top this month, reflecting in the GBPAUD cross also represents a similar triple top. The current bullish channel could take it to GBP190.074, while a downward correction would put it around GBP185.435. At the moment, the checkpoint is at 188.33. Furthermore, the low volatility level, evidenced by the ATR, together with the downtrend of the Parabolic SAR indicator, suggest that we could see a rebound once this oversold phase is exhausted.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Focusing on the GBPJPY and GBPAUD crosses, both have followed very similar patterns from January through February 12. In addition, the RSI divergence shows oversold levels of 29-30%.
In the case of GBPJPY, it is currently recovering after breaking a triple top this month, reflecting in the GBPAUD cross also represents a similar triple top. The current bullish channel could take it to GBP190.074, while a downward correction would put it around GBP185.435. At the moment, the checkpoint is at 188.33. Furthermore, the low volatility level, evidenced by the ATR, together with the downtrend of the Parabolic SAR indicator, suggest that we could see a rebound once this oversold phase is exhausted.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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