GBPUSD Bearish Continuation Following NFP and BOE Rate cuts.
Fundamental Analysis:
NFP Report Impact: On Friday, after the NFP reports, the price spiked higher but then continued to decline, indicating a strong US Dollar compared to the British Pound.
BOE Economic Factors: The Pound is struggling with production issues and the recent rate cut by the Bank of England highlights its weakness. In contrast, the Federal Reserve is expected to maintain rates until at least June, further showcasing the strength of the US Dollar.
Technical Analysis:
Last week opened with a gap to the downside but closed bullish.
This week also has also started with a gap and price is looking to fill it.
London Session Expectation: Looking for price to move higher during the London session to mitigate the 1-hour SIBI left at
1.2425
after sweeping liquidity at
1.2422
(NY PM High on Friday).
Will want to short above daily/weekly open
Target Levels:
Targeting Thursday's low @1.23600
Overall target is last week's low @1.2250
NB don't forget to manage risk and have an open mind since we follow what the market is printing not what we wish.
NFP Report Impact: On Friday, after the NFP reports, the price spiked higher but then continued to decline, indicating a strong US Dollar compared to the British Pound.
BOE Economic Factors: The Pound is struggling with production issues and the recent rate cut by the Bank of England highlights its weakness. In contrast, the Federal Reserve is expected to maintain rates until at least June, further showcasing the strength of the US Dollar.
Technical Analysis:
Last week opened with a gap to the downside but closed bullish.
This week also has also started with a gap and price is looking to fill it.
London Session Expectation: Looking for price to move higher during the London session to mitigate the 1-hour SIBI left at
1.2425
after sweeping liquidity at
1.2422
(NY PM High on Friday).
Will want to short above daily/weekly open
Target Levels:
Targeting Thursday's low @1.23600
Overall target is last week's low @1.2250
NB don't forget to manage risk and have an open mind since we follow what the market is printing not what we wish.
Note
NB: there is a weekly ifvg last week so we'll be watching the 4Hr bisi @1.2335 below thursday's low which could potentially change bias to the upside.Trade active
Last week, we noted the weekly IFVG and focused on the 4Hr BISI at 1.2335 below Thursday's low. As anticipated, the price bounced off this level, confirming the potential change in bias to the upside. Given this development, Tuesday created the low of the week signaling a strong bullish momentum.
Disclaimer
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.