Price shown little movement in the early morning, but we may have a some action later, after the United Kingdom will release the high impact data. Price hovers right above a major dynamic support, we’ll see how will react in the upcoming days, a breakdown is still favored as the Nikkei stock index is located in the seller’s territory.
The JP225 posted little gains and tries to recover after the yesterday’s drop. Continues to stay above the 19309 low. I’ve said in a former article that the index has signaled an oversold on the short term, remains to see if this will be an accumulation or a distribution movement.
The UK’s Second Estimate GDP should bring life on the GBP/JPY, it is expected to increase by 0.3% in the Q2, matching the 0.3% growth in the first quarter. You should keep an eye on the economic calendar because more UK’s data will be released.
Price is into a corrective phase and is almost to reach the next major downside target from the first warning line (WL1) of the major ascending pitchfork. A rebound will appear if the Nikkei will stay above the 19309 level. Could increase also because the GBP/JPY failed to reach the lower median line (lml) once again, signaling that is losing the bearish momentum.
However, I want to remind you that the pair remains under massive selling pressure on the short term after the breakdown from the chart pattern. Only a valid breakdown will confirm a further drop.
