Positive data bullish for GB100
UK’s manufacturing output decline was less than expected. Will the GB100 stock index continue advancing?
UK data lately were positive on balance: contraction in manufacturing sector slowed while construction output grew in July. Manufacturing production declined 0.6% over year after 1.4% drop in June, while construction output rose 0.3% after 0.2% decline. And labor market remains strong: data indicated UK jobless rate fell back to lowest since mid-1970 - 3.8% after 3.9% in June. And British lawmakers are opposing Prime Minister Boris Johnson’s actions aimed at leading UK out of European Union without a deal in the end of October. Positive data are bullish for UK’s stock market index.
On the daily timeframe GB100: D1 is rising after bouncing off the 200-day moving average MA(200).
-
The Donchian channel indicates uptrend: it is narrowing up.
-
The Parabolic indicator has formed a buy signal.
-
The MACD indicator is about to cross above the signal line and the gap is widening, which is a bullish signal.
-
The RSI oscillator is above 50 level but has not reached the overbought zone.
We believe the bullish momentum will continue as the price breaches above the upper boundary of Donchian channel at 7366.78. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the fractal low at 7196.94. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (7196.94) without reaching the order (7366.78), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Technical Analysis Summary
| Order | Buy |
| Buy stop | Above 7366.78 |
| Stop loss | Below 7196.94 |
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
EUR/USD extends losses to near 1.1150 on increased dovish ECB bets
EUR/USD accelerates decline to near 1.1150 in European trading on Friday. Softer French inflation data ramped up Oct ECB rate cut bets, weighing on the Euro. However, the downside could be cushioned by the renewed US Dollar weakness, as US PCE inflation looms.
USD/JPY slides 1% toward 143.00 as Ishiba wins LDP leadership race
USD/JPY is seeing a fresh sell-off toward 143.00 in the European session on Friday. The pair loses over 300 pips, as the Japanese Yen rebounds on Shigeru Ishiba's win in the LDP leadership run-off. Sanae Takaichi, who favored keeping interest rates lower, was expected to win the race.
Gold correction remains in the offing amid month/quarter-end flows
Gold price treads water while within a striking distance of the new record high of $2,686, as buyers take a breather and consolidate the weekly gains in the countdown to the US Personal Consumption Expenditures Price Index data release later on Friday.
US core PCE set to show continued disinflation trend, reinforcing Federal Reserve easing cycle
The core Personal Consumption Expenditures Price Index is seen rising 0.2% MoM and 2.7% YoY in August. Markets have already priced in near 50 bps of easing in the next two Federal Reserve meetings. A firm PCE result is unlikely to move the Fed’s stance on policy.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.