GBP/USD - Dips Will Be Supported Before BOE - 7/12/2016
British Pound is still subjected to headline risk but it looks like until BOE ( Bank of England ) is out of the way on next Thursday, 1.3000 will prevail. Buffeting between 1.3200 and 1.1300 is more likely scenario for next 48 hours.
We are not sure whether BOE will cut at this point or not but It is more likely that BOE will be extra dovish and possibly hint at more stimulus with some ballpark figure for market to chew at. With drop from 1.40 to 1.30, some of the things are priced in already so traders will be wary of selling the pound until they hear more. That means, dips are for buying. A kind of rise and repeat - buy near 1.3000 and be quick to book partial profit and managing trailing stop loss.
Other than that on Forex front, there is no secret about where JPY pairs are going. We are long USD/JPY, AUD/JPY and NZD/JPY. It didn't give enough pullback to have full position but still it's better than having nothing. Besides when market changes the course suddenly with forces in favor, there are hardly initial retracement so you just need to jump in with of course, risk in check.
We are not sure whether BOE will cut at this point or not but It is more likely that BOE will be extra dovish and possibly hint at more stimulus with some ballpark figure for market to chew at. With drop from 1.40 to 1.30, some of the things are priced in already so traders will be wary of selling the pound until they hear more. That means, dips are for buying. A kind of rise and repeat - buy near 1.3000 and be quick to book partial profit and managing trailing stop loss.
Other than that on Forex front, there is no secret about where JPY pairs are going. We are long USD/JPY, AUD/JPY and NZD/JPY. It didn't give enough pullback to have full position but still it's better than having nothing. Besides when market changes the course suddenly with forces in favor, there are hardly initial retracement so you just need to jump in with of course, risk in check.
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