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workingtraders
Mar 30, 2015 3:35 PM

$GBPJPY Strong support holding as GB data improves. Long

British Pound/Japanese YenFXCM

Description

Currently we are sitting on major support. Divergence 5 day RSI.
See chart for technical areas of interest.


Carney hawkish.
Deflation on GB not a major concern.

Low inflation is sparking consumer spending which what I like to see to support a rate hike.
BoE deputy governor Ben Broadbent says in an interview that bad deflation isn't a threat to Britain
Good deflation helping boost demand and output
Will watch for signs of price falls hitting wage growth
Only risk to GBP is going to be elections.



BOJ QQE will continue until prices are stable at 2%
Can't determine price expectations just looking at break-even inflation rate

Comments
IvanLabrie
It actually does look bullish in the short term.
joryan
I don't understand why you think it will go up after it has broken a longterm trendline to the downside?
workingtraders
Weekly and Monthly uptrend is in tact. With GBP - GDP and Carney Rate hike a go. It is a buy.
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