Hi Traders! The Trend is absolutely bullish on the daily chart, but at the same time, we are approaching a very important resistance area, so we cannot exclude some pullback in the short term. From a technical point of view, on the daily chart the pair could trigger a Reversal Pattern (3 Drives), but to work correctly the price should not rise too much above the 194 area. The bearish Pattern will start working with the support breakout at 191.32, so you need to have a little patience and wait for some confirmation before taking a short position, better by following the intraday chart.
Trade with care Like | Share | Comment
Comment
⋅
🔴 Intraday (1H) Support Area:
Comment
⋅
🔴 BoE Governor Andrew Bailey said they were not yet at the point where they could cut rates but things are moving in the right direction. The BoE said restrictive policy was weighing on the economy, loosening the labour market and bearing down on inflation pressures, which, despite Thursday's well-above target core CPI, has rate futures traders pricing in three BoE cuts by year-end 2024.
Comment
⋅
Comment
⋅
🔴 Daily Chart:
Comment
⋅
🔴 The Japanese yen held around 151.5 per dollar, hovering near its lowest levels in four months as the dollar strengthened on bets that US Federal Reserve monetary policy could remain restrictive even as other major central banks start cutting interest rates. Domestically, investors digested data showing Japan’s headline and core inflation rates both rose to a four-month high of 2.8% in February, supporting the Bank of Japan’s decision to end negative rates. Earlier this week, the BOJ raised rates from -0.1% to 0%, hiking for the first time since 2007 and ending eight years of negative rates amid rising wages and high inflation. The central bank also abandoned its yield curve control policy, ended ETF and J-REIT purchases and reduced bond buying activities. However, BOJ Governor Kazuo Ueda said the central bank will maintain an accommodative stance for some time, keeping rates at 0%. Help us reach 50 Likes to continue updating our technical analysis on this pair!
🔔 Sterling fell against a strengthening dollar after shrugging off British data on Wednesday as investors await the outcome of the Federal Reserve policy meeting. The pound hit a fresh 8-1/2-year high versus the yen as the Bank of Japan (BOJ) decision to exit its negative interest rates policy left higher-yielding currencies such as the pound appealing versus Japanese assets. British inflation slowed in February, keeping the Bank of England (BoE) on track to start cutting interest rates in the months ahead. British finance minister Jeremy Hunt said the figures would “open the door” for a BoE monetary easing. Markets slightly increased their bets on BoE monetary easing, pricing a roughly 63% chance of a first move in June from 58% before the data. Analysts expect the Federal Reserve to keep rates unchanged after its meeting on Wednesday, and they will focus on signals about the timing and extent of any easing this year. They also forecast that the BoE will keep investors guessing when it will likely start cutting rates. “We expect no changes to the guidance. The minutes should reflect the continued need for more confidence but smaller tail risks,” said Ruben Segura-Cayuela, European economist at BofA. “The emphasis from here is likely to still be on sticky services inflation, ongoing and upcoming wage negotiations, and the pass-through of the upcoming increase in the national living wage,” he added. Investors recently drove the value of the existing net long position, which assumes the pound will rise against the dollar, to its largest on record, at $5.632 billion. (GBPNETUSD=) “We have argued there is little justification for this (pound) performance (in 2024) and believe these stretched levels of positioning are increasingly vulnerable to any potential dovish shift by the BoE,” said Dominic Bunning, head of European forex research at HSBC. Bunning flagged that the pound has been the best-performing G10 currency relative to the greenback year-to-date.
TheAnonymousBanker
⋅
@TheAnonymousBanker, 🔔 Domestically, investors digested data showing Japan’s headline and core inflation rates both rose to a four-month high of 2.8% in February, supporting the Bank of Japan’s decision to end negative rates. Earlier this week, the BOJ raised rates from -0.1% to 0%, hiking for the first time since 2007 and ending eight years of negative rates amid rising wages and high inflation. The central bank also abandoned its yield curve control policy, ended ETF and J-REIT purchases and reduced bond buying activities. However, BOJ Governor Kazuo Ueda said the central bank will maintain an accommodative stance for some time, keeping rates at 0%.