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.
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.
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 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 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 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.
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]
This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
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
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.