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Pound

GBP/USD grinds higher, but bears eye break of 1.20US producer prices, manufacturing and housing data in focus No miracles will be expected for US housing data given the Fed’s hikes, but it will be interesting to see if the Philadelphia Fed Manufacturing Index contracts at a much faster pace, like the NY State Empire equivalent did yesterday. And with US retail sales hitting a near 2-year high and inflation hotter than expected, all evidence points towards a soft landing for the US and a case for more hikes. And that view could be bolstered if US producer prices come in hotter than expected today – and it could further support the US dollar on hawkish bets. GBP/USD 1-hour chart: Whilst GBP/USD has dragged itself from its post-CPI lows, key resistance looms and momentum could favour further downside. Yesterday’s soft-than-expected inflation report for the UK came as a welcomed surprise, which helped the pound quickly erase all of Tuesday’s hot employment gains. After briefly trading below 1.20, GBP/USD has produced a countertrend move in the form of a potential bear channel / flag. Given the relative hawkishness of the Fed and strong US data, my bias for GBP/USD to break below 1.20. So I’m now looking for evidence of a swing high around or below the weekly and daily pivot points (a break above which invalidates the bearish bias). Note that the downside band of 1-day implied volatility is just beneath the daily and weekly S1 pivots, and the downside band for 1-week IV is just below 1.1800.
Short
by CityIndex
1
MarketBreakdown | Dollar Index, GBPUSD, USDCAD, EURNZD Hey traders, Here are the updates & outlook for multiple instruments in my watchlist. 1️⃣ Dollar Index (DXY) daily time frame 💵 The market is consolidating within a narrow horizontal trading range. Taking into consideration, that the index is very bullish from the beginning of February, I believe that a bullish rally will continue. Wait for a bullish breakout of the resistance of the range, daily candle close above that will most likely trigger a bullish continuation. 2️⃣ GBPUSD daily time frame 🇬🇧🇺🇸 The pair was rejected heavily from a key daily structure resistance. A rejection candle with a long wick was formed. It indicates a strong bearish pressure. I believe that the pair will most likely keep falling. 3️⃣ USDCAD daily time frame 🇺🇸🇨🇦 The market is trading within a wide horizontal trading range. Its support was reached yesterday and the market was rejected from that. Probabilities are high that a resistance of the range will be reached soon. 4️⃣ EURNZD daily time frame 🇪🇺🇳🇿 The price is forming a huge ascending triangle formation. A bullish breakout of its resistance will initiate a strong bullish wave. Wait for a daily candle close above the neckline as a confirmation. Do you agree with my market breakdown? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
TVC:DXYLong
by VasilyTrader
16
GBPJPY: This pair poised for a drop / BoJ Governor voteWe've seen recent strength from JPY in preparation for the announcement of a new Governor, with nominations expected in the next few days. The currency rose this past week when it was 'leaked' that Kazuo Ueda could become the next Governor, and this could lead to a change in monetary policy. Anyone following me will note I'm weak on GBP and generally bullish on JPY in my ideas - I don't think BoE have room for hikes that can compete with other majors, BoJ do (and they seem to have managed their economy incredibly well post-pandemic). BoJ certainly has room for manoeuvre, and I'm expecting strength from the yen this year. With inflation levels higher than target, interest rates low and potentially a new Governor that is no stranger to voting for monetary tightening when needed, the landscape is there for shorting the GBPJPY. I think this pair is due a big drop, we may see the rise up to 164 to form a rising wedge, but my expectation is a fall before it reaches that point, and a big one at that.
Short
by Finchcliffe
EURGBP - I'm seeing nothing but a continuation to the upsideEuro Pound has been super messy of late, but after last week's respective Central Bank news and immediate future stance, I think it'll be a clean bullish continuation from here. ECB hiked rates by 0.50% last week and said there will likely be the same next time out. BoE also hiked by 0.50% but were much more dovish in their statement. I think it's pretty clear (if you live in the UK) that our economy is under enough pressure (cost of living, output, retail sales, you name it) without another 0.50% hike, I just don't think the BoE would / could do it (regardless of inflation). Current price is above all of my MA's, I think we'll see a continuation close to testing last September highs in the coming week or so.
Long
by Finchcliffe
3
GBPUSD, Weekly analysis Feb 6-10, 2023The pound against the Dollar faced a bearish momentum last week, a price zone of 1.24 again proved a strong resistance for this pair and sent down the price s from 1.24 to 1.20 last week, Here is also the same reason we are seeing the weekend Pound and strong dollar behind the last week's sellers The day chart displays a breakout trade during the last week out of the Rising wedge, this Friday's breakout move may look forward to retouching the breakout zone of the 1.23 price mark this week, before making a further downward move GBP's Monetary policy and GDP reports are awaiting on February 2nd week respectively on Thursday and Friday these reports may play a role in strengthening the pound, We have to wait for the reports this week
by Akfx369