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: going down?
2020-10-16 • Updated
Brexit is still hanging. The EU Summit didn’t give any conclusive signal to the UK. Nor did the European Union’s member states come to an agreement between themselves no how hard they should stick to the red lines and how impenetrable those red lines are for the EU. In any case, Boris Johnson is supposed to decide whether he wants to walk away from the negotiations or continue them – today. The day has just begun in the UK and EU, and hours are ticking.
In the meantime, EUR/GBP is going further and further down pressed by the channel resistance. In the last episode, the currency pairbounced downwards from 0.9080. If the logic of the movement stays the say, we will see 0.9000 reached pretty soon. But the day isn’t over and the tension is high: reversals are possible in all directions. That’s why watch 0.9040 on the downside as well, and look for trend reversal chart formations to make sure there is no surprise from bulls. Or bears.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
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?