GBP/USD at 1.2550 Amid UK GDP and Fed DecisionGBP/USD exhibits a sideways trend as it braces for a slew of data releases from both the UK and the US, fluctuating around the 1.2550 level during the Asian trading session on Wednesday. The currency pair experienced notable volatility in the previous session, influenced by employment data from the UK and inflation figures from the US. Closing below 1.2550 in the 4-hour chart could expose the next support level at 1.2510-1.2500 (38.2% Fibonacci retracement of the latest uptrend, psychological level) before 1.2450-1.2440 (50% Fibonacci retracement, 200-period SMA).
On the upside, 1.2600 (psychological level, 100-period SMA, 50-period SMA, 23.6% Fibonacci retracement) is considered the first resistance level, followed by 1.2625 (static level) and 1.2700 (psychological level, static level). After rising to 1.2600 in the early European trading session on Tuesday, GBP/USD reversed course and dipped below 1.2550. US inflation data for November could trigger significant moves ahead of policy meetings by the Federal Reserve (Fed) and the Bank of England (BoE).
Annual wage inflation in the UK, measured by changes in Average Earnings including bonuses, sharply declined to 7.2% for the three months ending October from 8%. Average Earnings excluding bonuses increased by 7.3% in the same period, down from the previous 7.8%.
Although the BoE is anticipated to provide policy insights this week, soft wage inflation figures might encourage policymakers expressing concerns about robust wage growth, making it challenging to bring inflation back to the 2% target.
Reflecting the negative impact of this data on the British Pound, EUR/GBP has risen to the positive zone near 0.8600.
Towards the end of the day, market participants will closely monitor the Consumer Price Index (CPI) data from the US. On a monthly basis, core CPI, excluding volatile energy and food prices, is forecasted to rise by 0.3%. A weaker-than-expected core inflation report could pose challenges for the USD in finding demand and assist GBP/USD in finding support in the latter half of the day. Conversely, results in line with or higher than analyst estimates may lead to further depreciation of this currency pair.
GBB
Shorting GBP USD based on Eliot Wave and weak supportBased on the current market structure and 25, 50, and 100 moving averages, we could build a case for another short on GBP USD. A good point of entry would be Point E which is 1.36906 and Target D (1.33646).
You can wait for the bearish engulfing candle and price closing at 20,50 moving averages.
Happy to get some feedback on this and please manage your own risk.
GBP/CHF short based on Setup CriteriaThis was a good trade because I followed all my rules. However I didn't listen to my intuition that was telling me to TP before the Fed cut interest rates and everything went haywire. I was stopped out and am grateful that I have protectd myself and my account so that I can pursue my passion again tomorrow. Listening to Intuition and respecting what it's telling me is a skill that I'd like to develop.
GBPJPY Reversed Nicely Off Resistance, Remain BearishSell 149.20. Stop loss at 150.01. Take profit at 147.14.
Reason for the trading strategy (technically):
GBPJPY reversed off its resistance at 149.20 (100% Fibonacci extension, 38.2% Fibonacci retracement, horizontal overlap resistance) where we expect prices to drop to its support at 147.14 (horizontal swing low support)
Stochastic (89, 5, 3) is reversed off its resistance at 96% where it has a lot of corresponding downside potential.