After quite an exciting Monday trading, the overnight Asian session passed in a quiet atmosphere. AUD found support for the RBA message and NZD did not suffer any revision of the RBNZ mandate. The work on tax law in the US is slow (but forward). Crude oil remains strong on hopes of OPEC and turmoil in Saudi Arabia. The stock market in Asia is pulling up improving the 10-year highs. Nikkei is up 1.7%, Hang Seng gains 1.3%.

On Tuesday 7th of November, the event calendar is light in important data releases, but the market participants will keep an eye on Halifax House Price Index data from the UK and JOLTs Job Openings data from the US. There are some speeches scheduled as well and they will start from ECB President Mario Draghi, then FOMC Member Randal K. Quarles will give a speech, then BOC Governor Stephen Poloz will speak and the last one will be the speech of Federal Reserve Chairperson Janet Yellen.

GBP/USD analysis for 07/11/2017:

The Halifax House Price Index data are scheduled for release at 08:30 am GMT and the market participants expect a drop in prices from 0.8% to 0.2% on monthly basis, but an overall increase from 4.0% to 4.5% on a quarterly basis. A resumptive index of house prices reflecting prices for new constructions and resale real estate markets. As all indices connected with the construction industry, it can be seasonally adjusted. The Halifax House Price Index is the UK's longest running monthly house price series with data covering the whole country going back to January 1983. According to the Global Real Estate Bubble Index releases at the end of September, London is the sixth and London property market is still firmly in "bubble-risk" territory. Still - it's not as bad as other European cities: Stockholm and Munich were both seen as more "bubbly" than London.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market still cannot decide which way to go and remains in the relatively narrow horizontal zone between the levels of 1.3030 - 1.3230. As long as the market trades below the golden trend line, the outlook remains bearish.

Market Snapshot: EUR/GBP reversed almost all recent gains

The price of EUR/GBP had bounced impulsively from the support at the level of 0.8732 and was capped at the level of 0.8938 after a failure to make a higher high. Since then, the price has deteriorated towards the level of 0.8783 after the market conditions went overbought. Currently, the downtrend might continue and can even accelerate if the technical support at the level of 0.8732 is violated.

Market Snapshot: USD/JPY about to collapse?

The price of USD/JPY has made a new local higher high at the level of 114.72, but since then is having a hard time to rally higher. The momentum is falling and the indicator has developed a clear bearish divergence. Any violation of the level of 112.94 will accelerate the losses towards the level of 112.27.