Last week marked the consolidation for the most active assets of March 1-15 (which is oil and gold). But next week has a lot to show, be ready to take part!
EUR/GBP: euro got stuck
2019-11-11 • Updated
BUY 0.8835 SL 0.877 TP1 0.8935 TP2 0.9015 TP3 0.9045
SELL 0.87 SL 0.8755 TP1 0.86 TP2 0.8525 TP3 0.8425
On the daily chart, EUR/GBP keeps forming the senior and the junior “Spike and ledge” patterns (ranges 0.87-0.9015 and 0.87-0.8835). the failure to break above resistance at 0.8835 led to a formation of a pin bar. A decline below its low will increase the risks of consolidation.
On H1, EUR/GBP is forming a “Broadening wedge”. To trigger it, it will have to decline below support at 0.87. On the other hand, a successful test of resistance at 0.8835 will increase the odds of a “Shark” pattern.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.