GBPUSD | Perspective for the new week | Follow-upThe British Pound (GBP) has been on a rough ride lately, closing out its fifth consecutive week in the red. But a late-week rally brought some hope, pulling the GBP/USD back from its lowest point in five months. Now, all eyes are on the upcoming week, which is packed with key economic data and a crucial Fed decision.
In this video, we'll analyze the GBP/USD currency pair, examining the potential for a bullish rebound in light of the upcoming economic releases and the Fed's likely rate cut.
With the Federal Reserve's September meeting on the horizon, investors are keenly focused on the potential for a rate cut. Current rate markets have priced in the beginning of a rate cut cycle, with the Federal Open Market Committee (FOMC) expected to meet on September 18. Although the probability of a 50 basis point cut was previously high, expectations have adjusted slightly. According to the CME’s FedWatch Tool, there is now a 53.5% chance of a 50 bps cut in September, with further cuts anticipated later in 2024.
Next week’s economic calendar is packed with key data. On Tuesday and Wednesday, we’ll receive the US Producer Price Index (PPI) and Consumer Price Index (CPI) inflation reports, which could provide crucial insights into market direction. Additionally, US Retail Sales and updates from the University of Michigan’s Consumer Sentiment Survey will offer more context for economic trends.
Given these developments, the big question is: will the British Pound be able to maintain its bullish momentum as we head into the new week? Join us as we dive into the charts, analyze the current market conditions, and discuss potential trading opportunities.
GBPUSD Technical Analysis:
Will the pound maintain buying pressure above $1.27500 and the ascending trendline next week? Watch this video for key trades this week. Join the discussion for updates on GBP/USD trading. Stay tuned for more content. Happy trading!
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Trading in the foreign exchange market and other instruments carries high risk and may not be suitable for all investors. The content provided here is for educational purposes only. Evaluate your financial situation and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.
Reversalsetups
GBPNZD | New PerspectiveFollowing a 500pips move since my last publication on this pair (see link below for reference purposes); It appears we do have another trading opportunity here on the GBPNZD.
The appearance of a reversal set-up on the 1H time frame coupled with the obvious that the price is currently within a supply zone; we might want to consider a selling opportunity on this one as we anticipate a breakdown/retest of the key level @ 1.94 for confirmation.
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Past performance is not necessarily indicative of future results.
The Simple Thing That Tells You Not To Trend TradeI am a firm believer that when I’m stopped out of a trade it’s for 2 reasons.
Reason 1: a deeper pullback has occurred. This does not mean the trend has changed. Price just pulled back a bit more than expected.
Reason 2: a reversal has occurred. At this point I’m stopped out of the trade and the direction I was once trading in reverses.
In this GBPJPY 1 hour timeframe a reversal. I’ve been the buyer up tip this point. Now that a 1 hour
Lower low has been formed I’ll stop being the buyer. A lower low represents the sellers pushing price past the last higher price buyers(Japan) were willing to buy the base currency which in this case was the Pound.
As a trend trader my goal is to trade with the trend per the timeframe I’m analyzing. So, the buy is invalidate Ted until price begins to trend again. So, I wait for a pullback and evidence price can stay below the higher high and fall again. If it can I begin selling.
If price passes the higher high the lower low will have been a false breakout and I am the buyer again.
Just a simple understanding of when it’s time to not trend trade. Any questions?
NZDUSD breaking out of consolidation? Needs confirmation.From neutral to bearish (see previous idea/post link below) especially if we see a daily close as confirmation.
Measured target for this move shown in the chart.
This is a reversal trade and is a contrarian position against the overall preceding trend. I tend to view these setups as lower probability so I'm managing my risk here as best I can. Let's see what the market gives us.
This is not trading advice. Trade at your own risk.