Ticker tape by TradingView

June 28, 2021

Pound Above Target Inflation Rate, What to Expect

Frank Cabibi

6/28/2021

On June 24, the Bank of England sought to cap inflation at a target rate of 2% with sustaining their low interest rates of 0.10%. However, CPI inflation last week took us above the 2% mark to 2.10% in May causing the MPC to set their eyes on a 2 percent target for the mid-to-long term. MPC said that they will not change interest rates until they feel that maintaining their target inflation rate seems unfeasible. Some concerning news surrounding the employment side of England's economy mentions the increase in the number of vacancies in jobs as their jobless rate sits modestly around 4.7% in comparison to the US's 5.8%, France's 8%, and Euro Area's 8%.

Our outlook

The pound looks like they are still struggling getting jobs numbers back on track, but it appears that they are doing better than most of the Euro area and the US employment-wise. Inflation is over their current target rate, but it is also better in comparison to other European countries and America. As for their interest rate: it's very low at 0.10% but at least it's positive. I like the outlook in England more than of the European Union as of now.

Trade Setups

GBPUSD

Price can't seems to cross above its 50 SMA on the 4H timeframe which a falling trend line adds to resistance. Mild support lies around 1.38601, and the bottom of the consolidation zone is below around 1.38000.

GBPAUD

GA down 0.34% for the day at the time of writing this and falling onto support in the 4H timeframe. Additional support lies around its 200 SMA. If price bounces, it could test resistance around 1.83984 where the pair had previously retraced.

GBPCAD

Kind of an ugly chart on GCAD 4H, but it looks like price has retraced from resistance starting at 1.71441 and is stuck in between its 200 and 50 SMA on this timeframe for now. If price breaks underneath support at this level, it could find support at a double bottom around 1.70570s.

A1 Edgefinder

FLASH SALE
Take 40% off the Edge finder using code "READER"
GET ACCESS NOW

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
A1 Trading Podcast
We Like These Pairs For Next Week

As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]

Read More
More Downside On The SPX500 After This?

When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]

Read More
More Upside For Yen After This

The historically 'safe' currency to hold in times of recessions is in a unique situation now with a couple factors in place. Here is why the yen is stronger today as well as some trade setups that could push its value either up or down. Weaker Yen Now, Stronger Yen Later The Bank of Japan […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
homescreensmartphone linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram