GBPUSD | Perspective for the new week | Follow-up

Amidst a backdrop of economic uncertainty, the US Dollar has managed to hold its ground, gaining modest strength against various currencies. This resilience comes on the back of a surprising surge in the US economy, defying recession fears that have loomed since 2022. Data reveals a robust 4.9% growth rate in the third quarter, marking the fastest pace in nearly two years. Despite this positive momentum, the market remains on edge, balancing optimism from strong economic data against concerns of higher rates and a more restrictive Federal Reserve.

Meanwhile, the GBPUSD pair has maintained a steady position above the $1.2100 mark throughout October. Despite attempts to capitalize on this demand zone, the Pound struggles in the face of hawkish Fed expectations, which bolster the USD and limit upward movements. The anticipated Bank of England decision to maintain interest rates at 5.25% on November 2 adds another layer of complexity, potentially hindering bullish bets around the British Pound and capping the GBPUSD pair.

GBPUSD Technical Analysis:
Will the pound find solid support at the $1.20500 zone, or are we heading towards a potential breakdown and a possible sell-off? The stakes are high, and we're on the edge of our seats!

The spotlight is on high-impact economic events from both the US dockets for clues. Brace yourselves as the anticipation and the actual events may trigger sharp price movements that could present incredible trading opportunities.

In this video, we've analyzed the Daily and 4-hour timeframes, exploring bullish and bearish sentiments to uncover the most promising trades for the week ahead. We've delved into key levels, trendlines, and support/resistance points, unveiling essential insights into the current market structure.

Keep a close eye on that demand zone at $1.20500. It's a decisive moment where both sellers and buyers are vying for control, and how the market reacts here will set the course for GBPUSD in the upcoming days.

Stay connected and join the conversation in the comment section to stay updated on the latest developments. Thank you for tuning in, and get ready for more enlightening insights into GBPUSD in our upcoming content. Buckle up for a thrilling journey ahead! Happy trading!

Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.

It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.

I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.

Please note that past performance is not necessarily indicative of future results

Comment:

The new week commences with cautious optimism as trading activities consolidate above the critical demand zone highlighted in the video. Despite attempts to gain momentum, the pair is experiencing a measured uptick, with traders exercising caution amidst ongoing tensions in the Middle East and in anticipation of pivotal central bank meetings on both economic fronts. Within this context, we find ourselves guided by a specific range, observing price action confined between the $1.213300 and $1.21060 zone. Patience remains paramount as we await clear signals, be it a breakout or breakdown, to inform our trading decisions.

Good Morning

Trade active:

Our buy position remains intact as price action reaches a new high at the 1.21740 zone. However, it is important to consider that the recent decline, or retracement , may be in play because of the perceived potential US Dollar recovery. Concerns about China's economic growth and the impact on risk sentiment may support the US Dollar. In today's economic calendar, we anticipate crucial data releases from the US economic docket: the August Housing Price Index and the Conference Board’s Consumer Confidence Index for October, setting the stage for the Federal Reserve’s pivotal monetary policy decisions tomorrow - Wednesday.
From a technical perspective, the ascending trendline remains unbroken and will continue to guide our trading decisions for today's session. We will delve into the technical aspects of this market condition during our upcoming Forex Morning Mastery session. See you soon!

Good Morning

Trade active:

UPDATE

As discussed during our live session today - Three positions running in profit; secure positions

Trade active:

Despite being taken out of our buy position yesterday with a moderate profit, the Pound Sterling is displaying a defensive stance and is holding steady above the range we initially identified at the start of the week, highlighting its potential for further buying opportunities. On the other hand, the US Dollar is maintaining its recovery gains, supported by higher Treasury yields, as market participants anticipate the Federal Reserve's decision. Additionally, attention is also focused on the upcoming US jobs data and ISM PMI figures.
Today, all eyes are on the highly awaited Federal Open Market Committee (FOMC) policy meeting, ahead of the upcoming Bank of England Interest rate decision on Thursday. Our bullish outlook persists as long as the Pound Sterling remains above the 1.21330 level. However, it's essential to exercise caution due to the potential market volatility induced by these significant economic events. Protecting existing positions is crucial in navigating these uncertain waters.

Happy New Month!

Trade active:

Following a choppy market condition leading up to yesterday's Fed interest rate decision, buyers regained momentum and surpassed the significant level of 1.21330, aligning with our short-term bullish outlook for this market.
Today, the Bank of England's Monetary Policy Committee (MPC) will convene to determine the course of monetary policy and subsequently disclose their decision. It is widely anticipated that the BoE will maintain the base rate at 5.25%. Considering the likelihood of volatility before or after the announcement, it is advisable to protect all buy positions.

Good Morning

Trade active:

Following the Bank of England's decision to keep interest rates unchanged and supported by a weaker US Dollar, the Pound Sterling closed around the 1.2200 zone in yesterday's trading session, marking its highest price level in the past week. During the press conference, BoE Governor Andrew Bailey hinted at the possibility of an additional rate hike but dismissed the idea of rate cuts. As a result, the GBPUSD pair is attracting buyers as the US Dollar struggles from the aftermath of the Fed's actions and ahead of the crucial US jobs data today.

From a technical perspective, our portfolio gained over 150 pips from four buy positions, thanks to the ascending trendline identified at the beginning of the week, which remains intact. At this point, it is advisable to protect all positions while keeping an eye out for new trading opportunities in anticipation of the NFP report.

Happy Friday!

Trade active:

Just as discussed during our live session this morning; five buy positions running in profit of over 600 pips as the NFP report came in below expectations at 150K jobs.
Protect all buy positions at this juncture.
Happy weekend everyone!