-GBPUSD is forming lower highs and lows and trading between both the 50 and 200MA. Traders wait for the lower high formation and go for a sell.

-EURJPY is about to break below the resistance of the consolation zone. Traders to look for break and retest. 

U.K. Gross Domestic Product (GDP) MoM

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

The previous Actual data was 0.5% while the forecast was 0.2%. The GDP(MoM) is due Wednesday, September 13, 2023, 11:30 GMT.

GBPUSD Technical Analysis:

GBPUSD is in a downtrend, making lower highs and lower lows. The swing high formation on the daily TF is at 1.31358, formed on 13th July. The price trades inside a bearish channel, with 50MA supporting the sentiment. However, the price could be seen taking support at 200MA and forming an inverted hammer.

With the price staying between both the 50 and 200MA, the market signifies that it can go into a consolidation state soon. The RSI line is at 39.77, showing neutral overbought and sold condition. Moreover, there is no RSI divergence seen on the chart.

According to the price action, the price must break the current swing low, and traders must go with the trend and wait for a lower high formation.

Pivot Points: GBPUSD

European Central Bank Press Conference

The European Central Bank (ECB) press conference is held monthly, about 45 minutes after the Minimum Bid Rate is announced. The conference is approximately an hour long and has two parts. Firstly, a prepared statement is read, then the conference is open to press questions. The press conference examines the factors which affected the ECB’s interest rate decision and deals with the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy. High levels of volatility can frequently be observed during the press conference as press questions lead to unscripted answers.

The Conference is due Thursday, September 14, 2023, 18:15 GMT.

EURJPY Technical Analysis:

EURJPY was in an uptrend, trading both above the 50 and 200MA until recent trading sessions where the price did not form higher highs and lows bus trading between two high and low zones(Support and Resistance). Price above both the MA shows there is a strong bullish trend short-term and long-term.

However, now the price is very near to the 50MA while still trading above it is seen taking support. Now, the price seems to be breaking the support. The RSI line is at 45.09, showing a neutral overbought and oversold condition. With the current price action, the price might break below the support. If it does, traders must wait for the retest of the broken zone and follow the break and resistance strategy. If the price comes back to test, the broken zone trader may go for a short-term sell.

Pivot Points: EURJPY

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