Sforex
Long

Sterling: When FED is over, BOE takes the stage of 'liftoff'.

FX:GBPUSD   British Pound/U.S. Dollar
178 0 2
- Fundamental Analysis

This week, absolutely market focuses on FED Meeting on Wednesday, but UK data and Sterling are also important.

Like I said in E/U analysis and in my page, I believe FED will hike rate and refuse to provide a clear path of next hike, it means I choose bearish bias for Dollar.

UK data this week:

- UK CPI            
- UK employment report.
- UK Retail Sales.

If UK CPI             on Tuesday is postive , Retail Sales on Thursday is also positive and vice versa : This is basic analysis. UK Employment report is released on Wednesday; this day market pays attention on FED Meeting, I ignore UK employment report. Hence, we only take care UK CPI             . The problem is performance of UK data last month were not good as market's expectation, so it's hard to have positive CPI             .

However, that is not my primary concern. surely, FED would hike rate, but who will follow FED ? It's only BOE.

BOE is expected the second central bank thinking about liftoff, so when FED is over, market comes back BOE and pricing for Sterling.

Hence, I think there is a lot of room to LONG GBPUSD             .

- Technical Analysis

There is no obvious resistance and support levels around current level of G/U. so it's hard to place stop loss and take profit also a good point to entry.

However, I see an interesting point. SMA100 + SMA200+long term descending trend line converge at one point around 1.5330

It's also 2 month high and the ceiling of Kumo cloud.

If GBPUSD             breaks long term descending trend line , this will trigger a strong rally of G/U, I expect this will happen.

Finally, I will BUY GBPUSD             to 1.5330 and further to 1.5500


United States
United Kingdom
India
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out