The GBP/USD has been consistently printing a cycle of lower ‘Highs’ and lower ‘Lows’ since mid 2014. The pair seems to have the perfect storm raging against it with US$ strength, helped along by the recent FOMC, and GBP weakness, courtesy of Brexit, and this would support continuation of this pattern. However, trends do not last forever and there will eventually be the print of a Higher Low and a Higher High. I’m not in the game of predicting when that might be but, rather, suggesting that traders keep an eye for this turn when it does trigger.
The A/U and Gold signals from Tuesday closed off for no further gain. There were four new TC signals today and three of the four worked: E/U for 25, EUR/CAD for 40, EUR/AUD for 90 and a loss, yet again, on the Kiwi for -30. Before and after screen shots of the charts are shown below. I’m out for Thursday but will be back on Friday.
Better than expected UK Employment data and thoughts of BoJ easing have helped to strengthen the GBP£ and weaken the Yen¥. This has triggered quite a few new TC signals with more still building.
The US$ is still making lower Lows and lower Highs whilst it hovers above 92.50 S/R. Oil is also holding near the $45 S/R level. The S&P500 has just printed a bearish Ichimoku Cross but remains above the support of the Cloud for now and a few FX pairs are also holding above S/R fib levels. I’m on the move a lot whilst away BUT not much on the trading landscape seems to be changing. The Cable still seems the one to watch as it treads water ahead of tomorrows BoE Interest Rate announcement.
I’m still on the move here in Lisbon and so this is just a brief update on a few FX pairs but, with BoE interest rates on the calendar this week, I’m wondering if the GBP/USD might be the pair to watch.