Should We Keep an Eye on the Upside Potential of the Rising GBP/JPY Pair?

Should We Keep an Eye on the Upside Potential of the Rising GBP/JPY Pair?

23.09.2024

Last weekend, the U.S. dollar saw a back-and-forth movement against the euro. The EUR/USD pair traded between 1.1136 and 1.1181. Price action lacked direction, fluctuating above and below the 20-period moving average on the hourly chart.On the 4-hour chart, the 20-period moving average is providing support on the downside, while on the daily chart, the pair is stagnating near the +2σ level of the Bollinger Bands. However, as the U.S. dollar has been rising during today’s Asian trading session, we will be closely monitoring whether it continues to strengthen against the euro.

Among European currencies, the pound rose against the yen. The GBP/JPY pair rose from 188.688 to 191.961. On the hourly chart, the price extended from the -2σ to the +2σ levels of the Bollinger Bands. On the 4-hour chart, the 200 SMA, which had been acting as resistance, has now shifted to act as support.On the daily chart, the RSI has risen to 65, so we should keep an eye on the pound’s potential for continued upward momentum.

Today’s economic indicators include the French Manufacturing/Services PMI at 16:15, the German Manufacturing/Services PMI at 16:30, the Eurozone Manufacturing/Services PMI at 17:00, and the UKManufacturing/Services PMI, at 21:00 remarks by U.S. Atlanta Fed President Bostic, at 21:30 the U.S. Chicago Fed National Activity Index, at 22:45 U.S. Manufacturing/Services PMI, at 23:15 remarks by U.S. Chicago Fed President Goolsbee,Chicago Fed President Goolsbee’s remarks, and at 26:00, U.S. Fed President Kashkari’s remarks are scheduled. We want to carefully assess the upside potential for the rising GBP/JPY pair.