21.09.201808:17 Forex Analysis & Reviews: Trading plan for 21/09/2018

Long-term review

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On the markets peace and maintaining positive moods dominate. Asian indices are recording a rise once again. In the currency market, the main move is the weakening of the yen and the increase in USD / JPY from 112.5 to 112.75. Among other main currencies, there is not much volatility. The EUR / USD exchange rate remains close to 1.1780.

On Friday, the 21st of September, the event calendar is busy with important economic releases. First, traders will know the GDP of France, and then PMI for industry and services from France, Germany and the entire Eurozone. The UK will publish Public Sector Net Borrowing data and Canada will post Consumer Price Index data. At the end of the day, the US will present ISM Manufacturing, Final Services PMI and Composite PMI data.

GBP/USD analysis for 21/09/2018:

Readings from the UK again surprise positively. This time, the pound is strengthening after the retail sales data were published, which instead of falling month-on-month and recovering from July, increased again. What's more, previous readings have been revised upwards. The dynamics of British retail sales decelerated to 4.0 (after a revision of 3.7% y / y) to 3.5%. Every year. A reading of 2.4 percent was expected on the yearly basis. The index excluding fuels dropped from 3.8 (after a revision from 3.8% y / y) to 3.3% with a 2.3% forecast. Moreover, the yesterday's breakdown after news that Prime Minister May intends to reject Barnier's new proposals on regulating the issues of the Northern Ireland border was erased.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The pair has broken above the technical resistance at the level of 1.3217 and made a new local high at the level of 1.3295, just below the technical resistance at the level of 1.3292. Currently, the level of 1.3217 will act as a support for the price. Please notice, the market is now in overbought conditions, but no sign of divergence was made yet.

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