Pound fell sharp as BoE Gov Bailey not seeing V shaped recovery
The Bank of England asked banks on 12th October on how ready they are for zero or negative interest rates, following up its announcement last month that it was considering how to take rates below zero if necessary. The BOE set a deadline of Nov. 12 a week after its next monetary policy announcement for banks to respond. Money Markets are expecting BOE's next move to be an increase in the 745 billion Pound bond buying program in November.
Technically, GBPUSD came out fom upward rising channel in 4hr with a break of channel support at 1.2960 or 50ma heading towards 1.2845-50 Oct 10th low. A break upside 50ma again can rise towards 1.2980 or 200ma and 1.3082 Oct 12th high. As we see a small retrace to the todays pivot point at 1.2955-60 would be a selling zone freshly for downside said targets. Overall sell on rise is advised for the day.
Suggestion: SELL GBPUSD FROM 1.2950-60 SL ABV 1.3030 TGT 1.2880/2830
ELSE
BUY GBPUSD FROM 1.3030 FOR 1.3120 WITH SL BELOW 1.2950
Technically, GBPUSD came out fom upward rising channel in 4hr with a break of channel support at 1.2960 or 50ma heading towards 1.2845-50 Oct 10th low. A break upside 50ma again can rise towards 1.2980 or 200ma and 1.3082 Oct 12th high. As we see a small retrace to the todays pivot point at 1.2955-60 would be a selling zone freshly for downside said targets. Overall sell on rise is advised for the day.
Suggestion: SELL GBPUSD FROM 1.2950-60 SL ABV 1.3030 TGT 1.2880/2830
ELSE
BUY GBPUSD FROM 1.3030 FOR 1.3120 WITH SL BELOW 1.2950