- Key points:
1- The fall statement came in the context of weak economic growth, high inflation rates and high interest
rates. The Office of the Balance Sheet projected that the UK would be in recession from the third
quarter which would last for just over a year until the third quarter of 2023, with GDP falling 2.1%
during that time.
2- Retail sales volumes are estimated to have increased 0.6% in October 2022 after a 1.5% decline in
September (revised from a 1.4% decline) which was affected by the additional state funeral bank
holiday.
3- On November 3, the Bank of England's Monetary Policy Committee (MPC) announced that it had raised
interest rates for the eighth consecutive meeting. Rates were raised 0.75 percentage points to 3.0%,
the largest increase since "Black Wednesday" in 1992.
- Technical Analysis:
Diving into the technical part, we can see that there's a bearish structure starting from level 1.18700 approx. on the daily timeframe. In addition to that, considering 50&200 MA's starting from 1 hour timeframe is taking a downtrend path, which means things will take time on the daily until things payoff a bit and go bearish. Now speaking of oscillators, even from the daily and down they're all taking the downtrend path. Same with MACD, starting from 4H, and getting to the peak on daily before breaking down. Now channels, donchian, supertrend; were kind of reaching the peak on the daily while as on smaller ones they already broke down.
Now, as a nutshell, all these meetings the EoB and the UK did during the last week, due to their importance and the reports they gave in which everyone was waiting for to know what's next, was very necessary to the currency as well for traders to know what path the GBP will take for the next days or even weeks. Now for those who are asking what's the next checkpoint if it went bearish? Well, on smaller timeframes, like the 1H and 2H, there is a major orderblock on a level of 1.17670 approx. In which the price would go for a reversal, or break down more. And to do so, economical events must play it's major role. It depends on interest rates and inflation, as well as the CPI, stuff like these...
1- The fall statement came in the context of weak economic growth, high inflation rates and high interest
rates. The Office of the Balance Sheet projected that the UK would be in recession from the third
quarter which would last for just over a year until the third quarter of 2023, with GDP falling 2.1%
during that time.
2- Retail sales volumes are estimated to have increased 0.6% in October 2022 after a 1.5% decline in
September (revised from a 1.4% decline) which was affected by the additional state funeral bank
holiday.
3- On November 3, the Bank of England's Monetary Policy Committee (MPC) announced that it had raised
interest rates for the eighth consecutive meeting. Rates were raised 0.75 percentage points to 3.0%,
the largest increase since "Black Wednesday" in 1992.
- Technical Analysis:
Diving into the technical part, we can see that there's a bearish structure starting from level 1.18700 approx. on the daily timeframe. In addition to that, considering 50&200 MA's starting from 1 hour timeframe is taking a downtrend path, which means things will take time on the daily until things payoff a bit and go bearish. Now speaking of oscillators, even from the daily and down they're all taking the downtrend path. Same with MACD, starting from 4H, and getting to the peak on daily before breaking down. Now channels, donchian, supertrend; were kind of reaching the peak on the daily while as on smaller ones they already broke down.
Now, as a nutshell, all these meetings the EoB and the UK did during the last week, due to their importance and the reports they gave in which everyone was waiting for to know what's next, was very necessary to the currency as well for traders to know what path the GBP will take for the next days or even weeks. Now for those who are asking what's the next checkpoint if it went bearish? Well, on smaller timeframes, like the 1H and 2H, there is a major orderblock on a level of 1.17670 approx. In which the price would go for a reversal, or break down more. And to do so, economical events must play it's major role. It depends on interest rates and inflation, as well as the CPI, stuff like these...