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Bankofengland

Euro May Be Readying to Reverse Against British Pound Post BoEThe Euro may be readying to push higher against the British Pound in the aftermath of Thursday's Bank of England monetary policy announcement. There, it was revealed that two policymakers seemed further hiking as 'not appropriate'. EUR/GBP has been steadily falling since 2020, with recent months on the premise of a more hawkish BoE compared to the European Central Bank. This could be changing... EUR/GBP cleared a falling trendline from September, as well as taking out the March high. That has exposed November and September 2021 levels before the 0.8695 - 0.8731 resistance zone nears. FX_IDC:EURGBP
Long
by QM_Dubrovsky
Interest rates, Inflation and how to trade it.Hey Traders, Massive week this week fundamentally for the Forex market. 3 big interest rate decisions being released so I thought there was no better time than now to have a chat about what it is, what it indicates and finally, how traders profit from it. Fed and BOE almost guaranteed to hike rates, RBA is sitting unsure. Have a watch of the video and I am more than happy to have a discussion in the comment section! As always, have a fantastic trading week and I wish you all many profits.
Education
by the5erstrading
4
GBP/USD - Short Sell Fundamental and Technical Set Up UpdateThe Pound has extended its weakness against the U.S Dollar as the UK economy slips closer to a recession. The UK cost of living crisis, which is down to high energy prices, rising taxes, and now higher interest rates is increasing the public mortgage, credit cards, car loans, student debt and other debt payments, causing investors to question the amount of interest rate hikes the Bank of England can deliver without causing a recession. I break this down in more detail in the video.
Short
by KayansMarkets
EURGBP bullish scenario:EUR/GBP was rallying on Wednesday on the diverging policy expectations from the Bank of England and the European Central Bank that meets on Thursday. This will be a key and popular meeting among central bank watchers as the Governing Council has the unenviable task of being the first team from the major central banks to provide an assessment of the impact on the Ukrainian crisis on growth, inflation and monetary policy. In this pair, technical analysis shows a technical figure Flag. The Flag broke through the resistance line on 10/03/2022. EUR/GBP is forming a bullish formation on a daily chart. If the price holds above this level, we will have a possible bullish price movement with a forecast for the next 9 days with a target of 0.84780. According to the experts, your stop loss should be around 0.8203 if you enter this position. Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
Long
by legacyFXofficial
1
EURO Rate Hike Expected on Feb-3-2022 /// Currently Jan-31-22We have seen a news release come out on forex factory around NY open about the expected Interest rate decision by the Bank of England. It turns out that it is indeed expected of the BOE to raise interest rates for the second time in a row. This has not occurred since 2004. This is positive news for the EURO as inflation is not necessarily a bad thing. The cost of money goes up in England, because apparently the economy can handle it, in the eyes of the BOE. This is why it is positive. But personally, I don't hear about wages going up a whole lot. Workers are the backbone of the Economy. Bit concerning. Unsure where price will go from here. Not going to be doing much EURUSD trading as we lead up to the IR announcment on thursday. I'm leaning Bullish I would like to see the Daily candle close solid bullish , as it looks to close in 1Hr, (our first daily close of the week) This would begin our fakeout structure here on EURUSD on the Daily Timeframe
Long
by ShrewdCatfx
11
Key levels to watch ahead of the BOE expected rate hikeOk it is time to have a another look at EUR/GBP as the Bank of England expected to raise rates this week and here we are inching down to the 2020 low at .8275, which is looking exposed – failure here will target the 200-month ma at .8182. I have been a technical analyst for over 30 years and can categorically state that over time, markets tend to mean revert to their long-term moving averages. It will be interesting to see if there will be enough impetus to break this key support this week. However there is another Sterling cross that is even more interesting….. The GBP/JPY chart, which over the past couple of months has eroded its 2007-2021 downtrend and sits this week just below the 158.22 October 2021 high. We suspect to really start to see some upside traction on this pair we will need to regain the 160 zone (50% retracement of the move 2015-2016 lies at 159.89). There is a huge base on this one as well approx. 157-127, which suggests an ultimate target of somewhere around 187 (all I am doing is using the depth of the base to give me a vertical upside measurement from the break point (which the high in 2018). Initial targets above 160 are 168.00/40 and 180.00/50, the 61.8% and 78.6% retracements. Disclaimer: The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
by The_STA
GBPUSD POTENTIAL BUYAs you know GBP were bullish since a month ago. its because the fundamentally factor. BoE rate high is the key on this situation. meanwhile the fed still not yet take action on the inflation. that makes gbp strong on the fundamental side. as you know that on the last nfp ,the report was so bad. that makes dollar more in suffer these day. investor still waiting for the fed to take action on this inflation situation and covid stuff. on technical analysis, gbp testing the 50 SMA on the daily chart. make possibility to goes up to test the 1.37000 side.
Long
by Dfxid
2
GBPJPY Reaching Weekly Resistance / Volume ClusterGBPJPY is Arriving at a weekly Volume Resistance. lets see how the price behave at this level marked on the chart. There are also high impact news today and tomorrow on Pound and Yen. I am short biased but still the price is in an uptrend so I am waiting for a correction of at least 150-200 Pips. The MACD also shows a divergence on a 2hr time frame and a heavy bearish divergence on 1hr. stop loss should be 45 pips. Good Luck! Trade responsibly. Use proper Risk Management.
Short
by Pak_shaheen
BoE Ends The Year With A Hike! (20 December 2021)Surprise rate hike! The Bank of England (BoE) delivered an interest rate hike of 0.15% during their monetary policy announcement last Thursday. Out of the nine committee members, eight voted for a rate hike while one voted for rate to remain unchanged at the previous 0.10%. All nine members voted for no change of corporate bond purchases at £20 billion and UK government bond purchases at £875 billion, totaling £895 billion. With an almost unanimous decision to hike interest rate as opposed to the previous meeting whereby only two members voted for a rate hike, it seems like the committee members are downplaying the impact of the COVID Omicron variant despite the recent spike in Omicron cases in the UK. Reasons behind the hike The first motivating factor for the BoE to hike interest rate is the resilient job market. To the surprise of the central bank, there was no concrete evidence that the ending of the UK furlough scheme in September led to a weakening in the labour market. Instead, the latest data released by the Labour Force Survey indicated that unemployment rate has fallen to 4.2% in the three months to October and that 257,000 jobs were added into the economy in November, thus showing little impact from the exiting of the furlough scheme. Moreover, the central bank’s committee highlighted during the November’s meeting that if future employment data were to be in line with its projection, it will be necessary for rate hikes to take place in order to tone down inflation and maintain it at the BoE’s 2% target. And during the meeting last week, the central bank deemed that the condition has been met, thus an interest rate hike is warranted. Another motivating factor for the rate hike is the recent strong inflation that has caught the attention of the UK Finance minister, leading to the exchange of open letters between him and BoE Governor Bailey. In November, prices in the UK rose to a 10-year high level of 5.1% and is expected to remain around the same level throughout the winter period and peak around 6% in next April. Being the first G7 central bank to carry out an interest rate hike, we can certainly expect the next hike to come as soon as February 2022 since inflation is on the way to triple the central bank’s 2% target.
by GH_Lee
1
GBPUSD 1-day classic patternsQ: What has the highest probability of occurring? In 2021 cable has also been rotating between $1.42 and $1.37. There are 2 classic patterns, 1 is validated. The double top, with a recent breakout of 1.3650 is validated. This pattern projects 1.3100 as the target. The double bottom , having recently tested and rejected 1.3600, would need to breakout from 1.4000 to be validated. This pattern projects 1.4400 as the target. Objectively cable was in an uptrend from March 2020 through March 2021. Price has been meandering around 1.4000 ever since. There are 2 clean resistance levels at 1.4250 and 1.4000 respectively. Continuing range bound price action about 1.4000 suggests this is the mean. Since the double top is validated the current position is short with a bias in favour of a throwback continuing. However the breakout has started to form that double bottom. The bias would change quickly if cable bulls decide to validate 1.4000 and ensuing momentum provides a 1.4250 test.
Short
by xciiitradingco
No Signs Of QE Tapering From The BoE Yet (06 August 2021)The BoE’s decision. As widely expected, the Bank of England (BoE) carried out no change to its monetary policy during its meeting yesterday. Interest rate remains at 0.10% with all eight voting committee members voting for no change. Quantitative easing (QE) remains at £895 billion in total. Michael Saunders, one of the hawks of BoE, voted for a reduction in government bonds purchase by £45 billion. Overall positive outlook of the UK economy in the near future. In the quarterly release of the BoE’s monetary policy report, the central bank said that the “impact of COVID on the UK economy fades further over time” although the Delta variant of the virus continues to spread in the UK. The confidence on the economic recovery led to the central bank’s positive revision of its economic projections. Economic Projections: For year 2021, UK GDP: 7.25 (7.25) CPI Inflation: 4.00 (2.50) Unemployment Rate: 4.75 (5.00) For year 2022, UK GDP: 6.00 (5.75) CPI Inflation: 4.00 (2.50) Unemployment Rate: 4.75 (5.00) For year 2023, UK GDP: 1.50 (1.25) CPI Inflation: 2.00 (2.00) Unemployment Rate: 4.25 (4.25) *Figures shown in parentheses refers to projections from May 2021 The BoE expects the UK economy to return to pre-pandemic level during the fourth quarter of 2021. As with the other major central banks, the BoE also felt that the recent rise in inflation is due to transitory factors. With the ceasing of the UK furlough scheme at the end of September, BoE Governor Andrew Bailey highlighted that unemployment was “no longer expected to rise”. He also mentioned that the challenge for the economy now is whether employers can fill up the job vacancies. On the matter of QE. Little was mentioned on QE during this meeting. The BoE said towards the end of its rate statement that “should the economy evolve broadly in line with the central projections in the August Monetary Policy Report, some modest tightening of monetary policy over the forecast period is likely to be necessary to be consistent with meeting the inflation target sustainably in the medium term”. The committee members also intend to start unloading the bond purchased by the central bank when interest rate has risen to 0.5% and will consider to do so actively when interest rate is at least 1%. According to the BoE, interest rate is projected to be at 0.5% by the third quarter of 2024. Hence, it is likely that the central bank will be holding on to its purchases at least in the near future. Interest Rate Projection: 2022 Q3: 0.2% 2023 Q3: 0.4% 2024 Q3: 0.5%
by GH_Lee
GBPUSD is in Bullish Area on Daily Following BoE ReleaseGBPUSD is in the bullish area on the daily chart on the left. On the right, the hourly EMAs have crossed bullishly. The stochastic still needs to cross up. If it does, a movement to 80 level and maintenance of that level (blue arrow) increases the chance of a successful trade. Trend following indicators may be useful in this case as a potential exit tool. Stop under hourly support in conjunction with risk management techniques. The BOE did raise its inflation forecast, "temporarily reaching 4% in 2021 Q4 and 2022 Q1." This is 1.5% higher than May's forecast. This is expected to moderate over time towards 2%.
Long
by FXCM
3
GBP/USD Analysis, Bulls vs BearsHello everyone, as we all know the market action discounts everything :) _________________________________Make sure to Like and Follow if you like the idea_________________________________ The GBP/USD has rallied a bit in the last few days where the Pair price jumped from 1.3571 to 1.3971, but the Bulls are struggling to pass the 1.39820 resistance line, if that would happen we could be seeing a big Bullish movement in the market price. The market is showing a lot of Bullish signs tho and is most likely to move in 1 out of 2 different ways in the next few days : Scenario 1 : The market price is trading near the resistance line at 1.39330, if a breakout happens the price most likely will be headed to the second resistance line 1.39820 where it will determine the outcome movement for this pair. If the Bulls were able to stay in control then it could be the beginning of a Good bullish movement. Scenario 2 : The market price is trading near the resistance line at 1.39330, if the bears were able to gain control then we could be seeing the price dropping to the first support line 1.38600 and then a battle will happen to determine the price movement, If the bears stayed in control then a Bearish movement could drop the price to the second support line at 1.37860 and that's were the main test between the Bears and Bulls will happen. Technical indicators are showing Bullish Signs as we see that : 1) The market price is above the 5 10 20 50 100 and 200 MA and EMA (Bullish Sign) 2) The RSI is at 55.37 showing great strength in the market and on its way to the overbought zone, and no divergences were found yet.(Bullish sign) 3) The MACD crossed the 0 line into a bullish state with a positive crossover between the MACD and the Signal line. (Bullish sign) 4) Bull/Bear Power is at 0.0083 (Bullish sign) Support & Resistance points : support Resistance 1) 1.3860 1) 1.3933 2) 1.3836 2) 1.3982 3) 1.3786 3) 1.4006 Fundamental point of view : The Bank of England (BoE) was pretty much as expected, with one dissenter and modest tightening seen over the forecasting period. GBP/USD saw a modest uplift in the immediate aftermath of the policy decision. The move was short-lived, however. In the view of economists at TD Securities, cable should remain fairly well-anchored around current levels. “The MPC voted to leave policy on hold today, with one dissent to reduce QE prematurely. There were two notable changes in the committee's communications: forward guidance was revised to acknowledge that some policy tightening would be appropriate by late-2024, and the sequence of tightening steps was revised, with a lower Bank Rate threshold to commence balance sheet runoff.” “While we would not be surprised to see an upward extension to test 1.3960, cable may struggle to advance much beyond 1.3985 without fresh catalysts.” “Solid support remains in place around 1.3875, with the 1.3835/1.3845 zone as the next attractor to the downside.” According to FXStreet This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice. If you have any questions please ask and have a great day !! Thank you for reading.
by GabiDahduh
2
GBPUSD: SELL signal on BOE meeting (3/3).In a few hours, the Bank of England is to publish data on the interest rate, the volatility on GBPUSD will increase significantly as usual, and a range of price consolidation is already being traced. I believe that until the moment of publication, we will grow a little more and after that we will fall by the traditional 100-150 points. ======= 1.4000 SELL 1.3930 target 1 1.3870 target 2 If you like my idea, please get the like and write your opinion in the comments.
Short
by MichaelKhlestunov
6
GBP/JPY - Pound Bullish on BoE Rate Hike Expectations Fundamentals Key Points: 1. Markets are expecting UK Inflation to overshoot the central banks' 2% target and reach 3.35% in the coming years. 2. UK 10 Year Bond yields have been rising as a result of high inflation expectations. 3. Against countries like Japan, Switzerland & Germany the UK 10 Year Government Bond Yield is more attractive for investors causing money to move into the UK from these countries and the pound has been getting stronger against all three currencies as a result of the UK's Bond Yield rising. 4. The Bank of England said on May 27th that if people are moved off furlough back into work at a faster pace than previously expected, The Bank of England may be forced to withdraw some of its monetary stimulus and potentially raise interest rates as inflation will rise as the demand for goods and services rise from employment and the re-opening of the economy. 5. High levels of employment will boost price pressures at a time when inflation is already expected to be high from supply shortages caused by the pandemic. 6. This scenario means the central bank will be forced to act and withdraw its monetary support to curb inflation by reducing its bond-buying program, causing the price of bonds to decline and pushing up the Yield due to their inverse correlation. 7. A rate hike would also cause UK short-term rates to move into a profitable carry trade against currencies like the Japanese Yen & CHF & EUR. What To Watch Employment Data Rate Hike Expectations UK Bond Yield’s Trade Idea’s EUR/GBP - SELL GBP/JPY - BUY GBP/CHF - BUY Technicals GBP/JPY - Key Resistance ¥160.00 GBP/CHF - Key Resistance 131.000 EUR/GBP - Key Support €183.500 

 ATR Volatility GBP/JPY - 4.76% GBP/CHF - 4.06% EUR/GBP - 3.72%
Long
by KayansMarkets
Chart of the day: Rates markets are pricing...Rates markets are pricing in faster policy normalization for the BOE With the Bank of England just a few days away, it’s always a good idea to reflect on the rates market and see what it’s pricing in. Looking at the SONIA quarterly futures rates we can see that markets are pricing in much faster policy normalization for the UK compared to the likes of the FED. SONIA futures are pricing in a first hike from the BOE by SEP 2022 (compared to March 2023 for the FED), and a total of 3 hikes (assuming 10bsp each) by March 2023. How does this information help us? It is helpful as it shows us a bit of a disconnect between the recent weaker price action, we’ve seen in sterling versus what the rates markets are implying for policy normalization. Thus, even though a lot of policy normalization expectations are baked into the rates market, the same is not reflected in sterling’s price action just yet. For now, consensus is not expecting the BOE to follow, the BOC’s lead by tapering asset purchases. But arguably the bigger focus will fall on the BOE’s rate hike projections.
CME:SONZ2021
by thunderpips