After The BOE's latest announcement of their rate hike, pound (GBP) pairs went flying higher. Some of this has to do with the fact that England is one of the first to tighten their grip on monetary policy while most other countries like the US are only pointing towards rate hikes without actually doing it yet. With that said, here are some of the biggest setups on GBP pairs.
The December 16 rate hike to .25 from .1% was the first step to keeping their 2% inflation target in sight without getting out of control. The current inflation level is sitting around 5% according to CNBC, which is still pretty high but not too out of control for the Sterling.
Additionally, Endgland is projected to be the fastest recoverer from the pandemic in the G7 countries, more so than the US and Canada.What we may start to see is a sentiment shift from USD and CAD to GBP.
Pound aussie showing significant strength on the daily timeframes price comes up to test a previous top around 1.89000s. Continued momentum looks probable as demand drives up the pair's price for a second test at resistance. A break above this level could push price higher to the 1.90000s.
Pound yen still looks strong on the 1D after pulling back to a steeply rising trend line. Support lies below around the 156 and 155 levels should price move lower. However, if price closes with rejection form today's lows, we may see a continuation to the highs around 158.
GDP numbers came in lower than expected in the US, marking the third straight drop in economic output. This is usually good news for the stock market indices and gold, however, bond yields continue to hold up above 5.1%. Here are some potential trade setups for both dollar and index longs depending on how the […]
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Last Friday's report showed a significant change in global market sentiment from smart money. What COT signaled has turned ultra-risk-off for traders who have been hoping for Fed fears to subside. This news could spark up worries about higher interest rates for the long term. EdgeFinder Analysis GBPUSD is now a -12 on the EdgeFinder […]
