Bitcoin, British Pound Update: Bitcoin was unable to break above the daily Ichimoku cloud on Tuesday and formed a morning star candlestick pattern. The British Pound suffered for another day, thanks to the U.K.’s disappointing construction PMI.
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BTC/USD was unable to break above the daily Ichimoku cloud on Tuesday and formed a morning star candlestick pattern after Monday’s spinning top candlestick on the daily time frame. While the Kijun line has crossed above the Tenkan line, the future cloud has turned thin and flat, giving us mixed medium-term signals.
Bitcoin forms Evening Star Inside Ichimoku Cloud
Bitcoin is moving in the similar direction versus the Japanese Yen, as the Ichimoku cloud’s upper band appears to be the main technical resistance for the BTC/JPY pair.
What’s Going on in the Bitcoin World?
Tuesday’s Bitcoin pullback is despite the fact that the markets saw more investment bankers backing Bitcoin. While many on Wall Street are rallying behind JPMorgan CEO Jamie Dimon and his criticism against Bitcoin, there are others who are far less skeptical. For one, Goldman Sachs Group Inc. (GS) is weighing a new trading operation dedicated to bitcoin and other digital currencies, the first blue-chip Wall Street firm preparing to deal directly in this burgeoning yet controversial market
Another major financial institution on Wall Street, Morgan Stanley, have had their CEO James Gorman come out and say that Bitcoin is not a fraud, nor even a ‘fad.’ With the growth we have already seen in the cryptocurrency market, especially in Bitcoin, there is a good chance we could see it reaching and even surpassing its all-time high level of $4,975 and potentially even reach the $6,000 area by the end of the year.
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Forex Update – GBP/USD Reaches Support PMI Data
The GBP/USD pair approached the key support level of 1.3227 on today’s Asian market open. Meanwhile, the EUR/USD pair continues to consolidate inside the daily Ichimoku cloud.
On the economic calendar today we have the UK Services and Composite PMI reading for September out at 8:30 AM GMT. The Composite PMI is expected to tick lower to 53.8 from the previous reading of 54. A worse than expected outcome could result in further drops in the GBP/USD pair.
Later at 2 PM we have the US ISM Services/Non-Manufacturing Composite (SEP) expected to tick slightly higher. At 7:15 PM, Fed head Janet Yellen Gives Welcoming Remarks at Community Banking Event. Depending on her tone on the economy, we could see some volatility in the USD pair during and after her speech.