GBPJPY: Targeting 174.20 within bullish channel

• AUD: Consumer confidence falls whilst House Building approvals increase to effectively cancel each other out; Cash rate remains on hold at 2.5%;

• JPY: Sold off across the board, fueled by a strong Nikkei following hopes of GFIP reform.

UP NEXT:

• UK PMI: The sector appears to have peaked a few months back and today is forecast slightly lower at 61.40. Due to the lower expectations we can take any reading above 61.50 as bullish for GBP, and even more so if it is higher than last month's 62.4. We have seen a steady stream of UK data missing the mark of late, yet still managed to stay up against the Greenback next week. This could be a sign that a bottom is forming on the longer-term charts (early days yet though so trend trades remain the favoured approach).

• US Data: We have 4 releases over 15-mins from US with the headline figure also being PMI. It is a similar story to UK PMI so the same analysis applies.

TECHNICAL ANALYSIS:

GBPJPY: Targeting 174.20 within bullish channel

It is refreshing to see clear trends developing. Here we have a texbook trend on H1 within a tight bullish channel. Due to the fact the pullbacks are relatively small we do run the risk of direct gains and not pulliung back to 173.50.

However we do have UK PMI data which is falls short may produvde that deeper reracement. 173.50 provides several techical levels of support so I would prefer to seek bullish setups above this level, and stand aside if we break below 173.50.

Counter-trend traders could consider bearish setups below 173.50 towards 173.It is refreshing to see clear trends developing. Here we have a textbook trend on H1 within a tight bullish channel. Due to the fact the pullbacks are relatively small we do run the risk of direct gains and not pulling back to 173.50.

However we do have UK PMI data which is falls short may prodded that deeper retracement. 173.50 provides several technical levels of support so I would prefer to seek bullish setups above this level, and stand aside if we break below 173.50.

​Counter-trend traders could consider bearish setups below 173.50 towards 173.

GBPUSD: Bullish opportunities within a bearish pattern

The British Pound has managed to fend of the mighty Greenback this past week, however the intraday timeframes are suggesting a potential bearish flag is forming. However whilst it remains within the channel then we can consider bullish trades above the lower trendlines.

A likely stalling point is 1.6610, and a break below the lower trendline confirms a bearish resumption in line with the daily and weekly timeframes.