2022-09-21 • Updated
GBP/USD is moving inside the ascending channel. Since it’s in the lower part of this channel, the pair should reverse up and continue moving in zig-zag.
However, fundamental factors ruined that plans. The UK has published poor retail sales for August. Analysts forecasted the 0.5% growth, while the actual numbers showed a drop of 0.9%. Thus, the pair is moving back and forth near 1.3785 as technical and fundamental factors are opposite in the short term.
On Wednesday, the report revealed that the UK inflation reached a 9 year high in August, so the Bank of England can start taking actions earlier than the markets expect. The bank may start discussing the tightening: hint at hiking rates or cutting bond buys. If it happens, the GBP will surge.
The long lower tails signal us that bears were trying to push the price lower, but by the end of the sessions more bulls appeared, and they pushed the price higher. In other words, lower prices were rejected, so the price moved up. That’s why the price is likely to go up in the next session as well.
Thus, we might assume if the pair manages to close above the 23.6% Fibonacci retracement level of 1.3810, it may jump to the next round number of 1.3825 near the 38.2% Fibo level. Support levels are the recent lows of 1.3780 and 1.3750.
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Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Canadian retail sales showed a slight rebound in February, rising by 0.1% after a 0.3% drop in January. However, this failed to fully offset the steeper decline earlier in the year, suggesting a weakening momentum in consumer spending. The increase in February was driven by gains in sectors such as sporting goods, hobby retailers, and building materials. Despite the...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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