GBPUSD | Perspective for the new week | Follow-up
Updated
Despite the recent retracement, the Pound remains poised for an uptrend continuation. The GBPUSD closed last week's trading session at the 1.25000 handle, holding steady after a stronger-than-expected US Nonfarm Payrolls (NFP) gave the US Dollar (USD) a final boost to end the week.
Looking ahead to the coming week, there is a flurry of central bank activity, with the US Fed making its final rate call for 2023 and updating its inflation outlook dot plot, followed by the Bank of England (BoE) and its latest interest rate decision. Both central banks are expected to maintain interest rates at 5.5% and 5.25% respectively to close out 2023.
Before the central bank action kicks off, next Tuesday brings UK Average Earnings and Claimant Count Change figures. Projections indicate a potential decline in annualized quarterly average earnings from 7.7% to 7.4% in the third quarter, while November is expected to show a slight increase in the number of unemployment benefits seekers from 17.8K to 20.3K.
As we look to the new week, the question remains: What lies ahead for both the US Dollar and the Pound Sterling?
GBPUSD Technical Analysis:
Will the pound continue its trajectory and sustain its momentum above the $1.200 zone? The stakes are high, and we're on the edge of our seats!
The spotlight is on high-impact economic events from both the US docket for clues. Brace yourselves as the anticipation and the actual events may trigger sharp price movements that could present incredible trading opportunities.
In this video, we've analyzed the Daily and 4-hour timeframes, exploring bullish and bearish sentiments to uncover the most promising trades for the week ahead. We've delved into key levels, trendlines, and support/resistance points, unveiling essential insights into the current market structure.
We are keeping a close eye on the potential range between $1.25000 and $1.25700 where a consolidation could happen before the next BIG move. It's a decisive structure where both sellers and buyers will be vying for control, and how the market reacts here will set the course for GBPUSD in the upcoming days.
Stay connected and join the conversation in the comment section to stay updated on the latest developments. Thank you for tuning in, and get ready for more enlightening insights into GBPUSD in our upcoming content. Buckle up for a thrilling journey ahead! Happy trading!
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Looking ahead to the coming week, there is a flurry of central bank activity, with the US Fed making its final rate call for 2023 and updating its inflation outlook dot plot, followed by the Bank of England (BoE) and its latest interest rate decision. Both central banks are expected to maintain interest rates at 5.5% and 5.25% respectively to close out 2023.
Before the central bank action kicks off, next Tuesday brings UK Average Earnings and Claimant Count Change figures. Projections indicate a potential decline in annualized quarterly average earnings from 7.7% to 7.4% in the third quarter, while November is expected to show a slight increase in the number of unemployment benefits seekers from 17.8K to 20.3K.
As we look to the new week, the question remains: What lies ahead for both the US Dollar and the Pound Sterling?
GBPUSD Technical Analysis:
Will the pound continue its trajectory and sustain its momentum above the $1.200 zone? The stakes are high, and we're on the edge of our seats!
The spotlight is on high-impact economic events from both the US docket for clues. Brace yourselves as the anticipation and the actual events may trigger sharp price movements that could present incredible trading opportunities.
In this video, we've analyzed the Daily and 4-hour timeframes, exploring bullish and bearish sentiments to uncover the most promising trades for the week ahead. We've delved into key levels, trendlines, and support/resistance points, unveiling essential insights into the current market structure.
We are keeping a close eye on the potential range between $1.25000 and $1.25700 where a consolidation could happen before the next BIG move. It's a decisive structure where both sellers and buyers will be vying for control, and how the market reacts here will set the course for GBPUSD in the upcoming days.
Stay connected and join the conversation in the comment section to stay updated on the latest developments. Thank you for tuning in, and get ready for more enlightening insights into GBPUSD in our upcoming content. Buckle up for a thrilling journey ahead! Happy trading!
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Note
Over the past 12 hours, trading in the GBPUSD pair has been limited to the range of 1.25580 to 1.25350, indicating a lack of clear directional bias among market participants. Notably, the price action is currently oscillating around the ascending trendline observed on the 4-hour time frame. Although caution prevails among investors ahead of crucial economic data and central bank meetings this week, the Pound maintains a positive stance, staying above the ascending trendline and the key level at 1.25000. However, it's crucial to acknowledge that this does not eliminate the potential for sellers to enter the market. As a result, a trading range has been identified on the chart to guide today's trading activities.Good Morning
Trade active
#GBPUSDUPDATE
Buy position triggered
Trade active
#GBPUSDUPDATE
Protect positions as we look out for more trading opportunities
Trade closed manually
#GBPUSDAll buy position closed as selling pressure resumes. As discussed during our live session this morning, a breakdown/retest of both the ascending trendline and the 1.25350 will welcome selling opportunities.
Trade active
As the Pound Sterling continues its recovery, approaching the 1.26000 mark in the Asian session, a buy re-entry signal has been activated. Despite mixed data from the UK employment report, attention now shifts to the upcoming US Consumer Price Index (CPI) report. The pivotal events of the week lie in the interest rate decisions of both the US Federal Reserve (Fed) and the Bank of England (BoE). Exercise caution and protect existing positions while remaining vigilant for potential new trading opportunities.Good Morning
Trade closed manually
All buy positions are closed after the Pound Sterling surged above 1.2600 in response to the US CPI data meeting market expectations. However, the subsequent reversal saw the pair's value dip below 1.2550, breaking down the ascending trendline and prompting the trigger of a sell position in the process. In light of these developments, we maintain a bearish stance, intending to uphold this bias as long as price action remains below the established structure.Trade active
The sell position initiated yesterday holds its ground as GBPUSD navigates a lateral path, preparing for an influx of data from both the US and UK economic calendars. The market is on the lookout for key indicators today, including projections of a 0.1% decline in the UK monthly Gross Domestic Product (GDP) and Industrial Production for October. Additionally, Thursday is poised for the Bank of England (BoE) to maintain a hawkish hold, keeping interest rates steady at 5.25%.Our bearish bias remains intact as long as price action remains below the ascending trendline that was broken amid yesterday's volatility incited by the UK employment data and the US inflation report. As we tread through these market dynamics, the broken trendline remains a pivotal reference point guiding our bearish bias in the current trading landscape.
Good Morning
Trade active
Amidst the backdrop of a dovish Fed pivot, optimism has surged in the market, leading to the trigger of three buy positions with over 100 pips. The US Dollar is at the moment considered weakened, as market participants eagerly anticipate the BoE interest rate decision today for fresh policy cues. The Bank of England is widely anticipated to maintain its key interest rate today, setting the stage for intense volatility in the Pound Sterling following the BoE's policy announcements. It is also worth noting that the UK economy contracted by a larger-than-expected 0.3% in October, attributed in part to the impact of higher interest rates on household spending. Given these developments, the focus is on safeguarding existing buy positions while also preparing for new trading opportunities in light of today's event.Good Morning
Trade active
UPDATEJust as discussed during our live session this morning
Trade active
#GBPUSDUPDATE
Trade active
The Pound Sterling soars as we currently have five buy positions running with a total of 580 pips in profit; protect all positions as we look out for new trading opportunities.Trade active
Our journey has been nothing short of triumphant, as we ride a wave of success with over 700 pips in profit across six buy positions, thanks to the pair maintaining its weekly gains. This stability has been supported by a hawkish outlook from the Bank of England (BoE) and a dovish pivot from the Federal Reserve. As expected, the BoE chose to keep interest rates at 5.25%, with Governor Andrew Bailey indicating that there is still work to be done before inflation aligns with its target. This has contributed to an overall hawkish sentiment. Investors are now eagerly awaiting Purchasing Managers Index (PMI) data from both the US and UK economic dockets. As we await these developments, we will continue to protect our buy positions and closely monitor price action, particularly given the anticipation surrounding today's economic events.Happy Friday!
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