Trade_Journal

$GBP - What shall we do now?

Trade_Journal Updated   
FX:GBPUSD   British Pound / U.S. Dollar
$GBP - What shall we do now?

GBP - Since we hit below 1.14 - 1.10 it's really been a one way for this pair and it could continue...However, we have options!

  • 1 Emergency rate hike
    2 Intervention
    3 IMF
    4 Fiscal spending
    5 Swap Lines

Now these are the options technically speaking we filled gap around 1.09 this morning, I expected 1.06 on table during open we hit lows of 1.03... Now, if we can hold the levels of these levels and perhaps go above 1.09 then no worries. However, if we carry on with these moves then things will get very interesting and keep an eye on the Gilt & FTSE!

Now it all looks very dismal when it comes towards headlines but actually there are coming amazing investment opportunities the prices we are getting and of course if you're in USA, what a great time for you to visit! For Candle stick traders - dragon fly!

Keep alert of what happens next, this week we have a lot speakers out of CB's and most importantly trade your plan!

Best,

TJ
Comment: -
Comment: Bank of England says it "will not hesitate" to raise rates.

No action from the BoE as for today - Leading GBP to have a little pull back.
Comment: Technically: Currently at this moment of time the range of Lows: 1.06350 - Highs:1.09250 areas.

A break to either direction for shorter term idea.
Comment: UK 10 government bond yield jumped from 3.25% to 4.51% in less than a week.

Bank expected to raise rates significantly from their current 2.25 per cent, with markets predicting they could hit six per cent.

Mortgages edges higher... Virgin Money temporarily withdraws all mortgage products in the UK. Credit is in trouble!! Just a few month ago I was mentioning this on the various social platforms I am part of.

UK's Fiscal Blunder is still yet to continue... and dollar - cash is king. Don't fight the trend. Remember: The trend is your friend until it's broken.

Technically, a pattern is forming within 4 hr triangle - range. A break to either direction...
Comment: IMF urges Truss to reverse top rate tax cut in rare intervention.

BOE to temporary buy of long-dated UK bonds. That should elevate GBP higher.
Comment: Reaching key resistance areas of 1.09 handle a break above could take GBP towards 1.10-1.11 areas. However, if we break below 1.06 bears are back in control for now we consolidate.
Comment: Partials taken, letting rest run towards 1.11 areas.
Comment: *UK GOVT EXPECTED TO REVERSE SCRAPPING OF 45% TAX RATE - U turn was made this morning, lets see if this still goes ahead I expect higher GBP above re-testing 1.12 areas. 1.13-1.14 can easily be achieved if they were to extend this further to other factors they had put in this ' mini-budget'...
Comment: THE BANK OF ENGLAND CONFIRMS THAT IT WILL CONTINUE TO BUY LONG-TERM UK GOVERNMENT BONDS UNTIL OCTOBER 14TH
Comment: Liz to hold a press conference later on today.

Headline: Liz Truss to announce corporation tax rise in major mini-Budget U-turn
Comment: 2pm press conference due.
Comment: Rumour has it: Kwasi Kwarteng is being sacked as Chancellor as Liz Truss prepares to reverse the mini-Budget.

1.14 1/2 to 1.15 key resistance areas
1.11 to 1.09 3/4 key support areas
Comment: *UK NAMES JEREMY HUNT AS CHANCELLOR
Comment: What he said back in summer... "Right now, the most important thing to tackle in the British economy is inflation."
Comment: Basically we going to do Rishis plan:

UK to reverse almost all tax changes announced September 23rd

Energy intervention being shortened

Next rate expectation is in Nov - BOE.
Comment: Technical view:

Resistance: 1.13700 areas break above takes us to 1.14/1.15 handle and above 1.15, 1.17 can easily be achieved.

Support: 1.11330 areas, if that was to break down, that takes us down to 1.10170 and perhaps high ends of 1.09.

Have a great week ahead.
Comment: Lettuce resigned yesterday: New PM to be announced in week time... For now technically 1.09/1.08 we could head towards if we break below 1.11 handle.
Comment: Rishi seems way ahead, this afternoon it will be confirmed who will be the next PM. Boris is no longer participating.
Comment: Technically: Break above 1.14 then 1.16 will be easily achieved!
Comment: 1.24 - 1.26 next area of interest, first a pull back.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.