Ticker tape by TradingView

Want Trade Alerts?

See all of our entries, exits, and analysis. 
Use code READER for 25% OFF!
Join VIP

August 3, 2021

Three Things To Know About The Pound This Week

Frank Cabibi

8/3/2021

To report:Date
BOE Monetary Policy ReportAug 5
Monetary Policy SummaryAug 5
MPC Member Broadbent Speaks Aug 6

In the Bank of England's monetary policy report this Thursday, analysts expect policymakers to remain less hawkish as concrete dates for rate hikes are still not decided. Broadbent's stance on inflation is the same as in the United States: inflation is transitory and will not last as the economy continues to recover. He also said that the current rise in inflation is coming from the higher oil prices that were expected to keep rising going into 2022.

Pound is preferred in risk-on pairs and not preferred in risk-off pairs. Analysts say the market is pricing in the rate hikes already even though there are no set dates yet.

Brexit problems have also contributed to the supply of goods and labor shortages in the UK. With the expectation of not raising interest rates, investors are moving away from the pound and to safer currencies like the yen or the franc.

Our outlook

I am mostly bullish on the pound this week, but it depends on the pairs. GBP looks weaker against pairs that are more risk-off like USD, JPY and CHF. So I might be looking at the short side of these pairs. However, against CAD, AUD and EUR, I would be looking to be long on the pound.

Trade Setups

EURGBP

EURGBP on support right now and looks like it wants to bounce back. If so, the pair could retest the falling trend line for resistance. If price falls under current support, it could drop all the way down to a double bottom around .85045 on the 4H chart.

GBPCAD

GBPCAD looks like it's breaking out of a wedge on the 4H timeframe, and a continued run could take the pair up to a top around 1.74949 or even higher at 1.7560.

GBPJPY

GBPJPY could be bouncing off support here on the 4H chart, but behavior has been relatively weak in terms of price action in the last couple months. A long term falling trend line seems to be keeping price from breaking up while lower highs and lows are forming.

GBPAUD

GBPAUD looks strong against the Aussie buck amid their militarized lockdown in Sydney. The pair continues to find support on a rising trend line on the 4H chart. There is also support around 1.87569 should price fall.

new trade alert

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Use Code "READER" for $5 OFF!
JOIN NOW

FREE broker quiz

Need Help Finding The Perfect Broker?
Take our broker quiz and find out your best broker match!
FIND A BROKER

free Trading PLan

Download Now
Create a Trading Plan Using Our FREE Template
DOWNLOAD
How Much Money Do You Need to Trade Forex?

One of the most common questions we hear from beginner traders is "How Much Money Do You Need to Trade Forex?" and our answer is: well, it depends. The amount of money you need depends on your goals as a trader. Is your goal to make a lot of money or are you going to […]

Read More
A USD Surge Is Coming

It is likely we see a USD surge in the near future as we get closer to the Fed meeting in March. Bond yields hit yearly highs this morning as the dollar begins to look stronger. A prominent "risk-off" attitude in the markets is showing now, and it looks like investors will be getting out […]

Read More
Bitcoin About To Catch Big Upside

Bitcoin has been vastly oversold due to the fact of regulation concerns from the US government wanting to make a more controlled market just like stocks. For over 2 months, the crypto has fallen nearly 42% from the highs in November, but it looks like it has found a bottom in the $39Ks. Why Bitcoin […]

Read More

Create a Trading Plan Using Our FREE Template

DOWNLOAD FREE
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
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram