The GBPUSD has extended yesterday’s decline, and now looks poised to test pivot support at 1.5264. Indeed, I have been short this pair since 1.54469, with an open target, and a stop at 1.5600 as price action remains capped by the 50-day moving average. GBP traders will now shift their focus to the industrial and manufacturing reports for the month of July, which will be released tomorrow at 8:30 GMT. A disappointing report may add additional weight onto the single currency. Meanwhile, the Bank of England is expected to release their key overnight lending rate on Wednesday, with the minutes of the meeting to be released on September 22nd.
Nonetheless, my position in the USDJPY remains unchanged from the previous day. Worth noting was the Bank of Japan interest rate decision. The central bank said that it would carefully examine the outlook for economic activity and prices, while no mention was made of influencing the yen.
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