The UK pound was helped to strengthen against many currencies by an inflation report and the words of the BoE’s Broadbent. The pound/dollar renewed to 1.5240 after the FOMC minutes were published and today in Asia the rate left the five day corridor.
Source: alpari.com, “Pound/Dollar: Buyers Readying for Break in 1.53” more…
On Thursday the pound/dollar was trading above the LB in a range of 70 points. In the first half of the day the rate dropped to 1.5173 and in the second it returned to 1.5240. It’s now at 1.5199. If European trading sees a break of the 1.5191 support (LB and trend), I’ll be expecting a weakening of the pound to the 67th degree at 1.5145 (technical signal without any fundamental news).. more…
Pound fell sharply yesterday across the board, especially against the USD. We can see a new leg down for more than 200 pips beneath the trendline connected from October 13th which suggests that price is headed much lower. From an EW perspective we see a completed wave (2) now at 1.5500 so current decline is impulsive that should finally break below 1.5105 low from end of September. At the same time we see bearish head and shoulder pattern, now completed as well which also suggests lower prices in days ahead. more…
As my colleague Fawad Razaqzada noted earlier today, traders were waiting with bated breath for the Bank of England’s “Super Thursday” festivities to kick off the final rush of top-tier economic data ahead of the weekend. As it turns out, the event only lived up to its billing for bears, while bulls were left holding the bag. more…
My forecast worked a treat. The pound/dollar dropped to 1.5360 from the LB. The pound didn’t fall too much because the euro/pound was holding it back. Today’s key event for the financial market is the Bank of England meeting. Forecasters expect the base rate to be left unchanged at 0.5%. The results of the MPC voting and what Carney has to say afterwards will bear importance for traders. more…
Despite the weak stats from the UK, the GBP is holding its position thanks to the euro/pound cross. However, even the cross won’t be able to keep the pound from weakening against its counterpart from across the pond for too long.
After the FOMC meeting, the pound/dollar fell to 1.5248. My target is more…
As we go to press, the pound has managed to bounce back after its initial drop on the back of the UK GDP data. According to the ONS, economic growth slowed to half a per cent in the third quarter from a rate of 0.7% during the previous three months. Analysts were expecting a more moderate slowdown to 0.6%, hence the initial negative reaction of the pound. more…
It has been a slow day in the FX markets today after last week’s ECB-inspired sell-off in the euro had raised volatility across many currency pairs. But one currency that has caught some attention today is the Swiss franc, which has been sold heavily in response to comments from the Swiss National Bank’s Vice President. In a Swiss newspaper on Sunday Mr Fritz Zurbruegg said that the SNB would be analysing more…
EUR/USD had a massive decline at the end of the week and the bears seems to be in charge here. The decline went trough the support area around 1.1145 and kept going. This decline is in line with the wave count which has been expecting powerful decline for some time now. Although this decline is still a 3 wave structure, the larger wave structure is supporting the view that we have started the next phase in dollar strength. more…
Pound has moved higher last week, more than we anticipated but still with potential corrective structure. We see three legs from the lows with wave (c) now trading near resistance. Usually corrections of second waves will retrace for nearly 50-61.8% compared to previous five wave move which in our case is very near so bearish turn may follow in sessions ahead. At the same time we also see cable at resistance of the previous swing low from Sep 16th. Technically speaking bears can cause a turning point soon, but downtrend continuation will be confirmed only when price goes beneath 1.5244. more…