Daily FX Analysis: GBP Data in Focus After Initial Correctional Moves

Our initial correctional moves have provided some nice plays with the stochastics crossovers playing out well. Hopefully a few of you managed to capitalise on these; apart from that Monday was extremely quiet.

Tuesday sees a flurry of U.K. data in the morning which could offer some interesting plays.

Key press conferences are scheduled from with Member Bullard and Dudley, SNBs Jordan and BoC and new BoE governor Carney.

SNBs Jordan could be an interesting one to watch for EUR/CHF longs. Look for comments on the relative value of the Swissy vs the euro.

EUR/USD
The euro had a nice correctional move as we predicted. 1.2900 handle is key, as we approach the upper end of a stochastic cross need to see whether we get a reversal or the correctional move continues slightly higher.
We prefer the Short plays from 1.3000 handle. If you aren't short or looking to play stochastics crosses lower, we wouldn't be surprised to see this pair continue its correction higher before another push lower. Risk events later in the week may be key for this move.



GBP/USD
A flurry of data due from the U.K. Tueday. We are really expecting this heavy data week to set the medium term for the Pound.
The euro pair has respected technicals nicely as of late, and we got a nice correctional bounce on Monday.

Monday's daily chart is in a tight range ahead of the data, either pointing to an interim support level on its push higher from the 1.4900 handle or on its way back down after a correctional move from the 1.60 to 1.49 move lower.
Our order book system is also swapping between long and shorts, sitting long from low 1.52 level. We suspect this could reverse on a more considered move in the pair.
It is imperative to monitor the data, as it could provide clues to the British pound's next move.


AUD/USD
The Aussie's correctional move played out, and can now look for a slight pause lower. However the heavily sold Daily chart could do with a further correction before another move lower to bring the pair back out of heavily oversold territory.
The order book system continues to like short term longs for the time being.