Our thoughts on the GBP going forward...
Weekly action is currently seen defending the underside of a recently broken weekly Quasimodo line coming in at 1.22. On the condition that the pair remains bearish beyond this hurdle, then the next port of call on this scale can be seen around weekly support coming in at 1.1904. Looking down to the daily timeframe, yesterday’s candle tested daily support drawn from 1.2135/ the daily 161.8% Fib ext. at 1.2119 taken from the high 1.2706, consequently erasing all of Monday’s gains!
Over on the H4 candles, we can see that the major plummeted lower going into the early hours of Europe yesterday, taking out both the 1.22 handle and the H4 mid-way support at 1.2150. Nevertheless, during the London morning segment, price did manage to bottom just ahead of the 1.21 handle and break back above the 1.2150 vicinity into the US open.
Our suggestions: Although the market does sport a rather bearish vibe right now, traders are in somewhat of a precarious position according to technical structure. A sell trade looks fantastic from the weekly timeframe, but at the same time, a potentially terrible idea on the daily timeframe. A buy trade on the other hand, appears sound from the daily timeframe, but risky from a weekly perspective.
With the much anticipated FOMC rate decision, economic projections and press conference upon us today, and UK employment data just around the corner, we feel opting to stand on the sidelines may very well be the better path to take. At least until the FOMC have had their way!
Data points to consider: UK employment report at 9.30am. US CPI report/US retail sales both scheduled for release at 12.30pm, FOMC rate decision, economic projections and press conference at 6-6.30pm GMT.
Over on the H4 candles, we can see that the major plummeted lower going into the early hours of Europe yesterday, taking out both the 1.22 handle and the H4 mid-way support at 1.2150. Nevertheless, during the London morning segment, price did manage to bottom just ahead of the 1.21 handle and break back above the 1.2150 vicinity into the US open.
Our suggestions: Although the market does sport a rather bearish vibe right now, traders are in somewhat of a precarious position according to technical structure. A sell trade looks fantastic from the weekly timeframe, but at the same time, a potentially terrible idea on the daily timeframe. A buy trade on the other hand, appears sound from the daily timeframe, but risky from a weekly perspective.
With the much anticipated FOMC rate decision, economic projections and press conference upon us today, and UK employment data just around the corner, we feel opting to stand on the sidelines may very well be the better path to take. At least until the FOMC have had their way!
Data points to consider: UK employment report at 9.30am. US CPI report/US retail sales both scheduled for release at 12.30pm, FOMC rate decision, economic projections and press conference at 6-6.30pm GMT.
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