Just a few hours ago, Andrew Bailey, the governor of the BoE gave a speech regarding his testimony, along with Deputy Governor Sarah Breeden, on the Financial Stability Report before the Treasury Select Committee, in London. The speech reflects the commitment of the BoE to continue its projection towards the target inflation rate. Although the speech didn’t yield much market volatility at the time of writing, here are my trade ideas based on the price data.
GBPUSD – D1 Timeframe
GBPUSD at the moment is approaching a rally-base-drop supply zone which aligns with the 88% of the Fibonacci retracement tool. I expect to see a short bearish move as a result of this. After the trendline might have been broken and retested, I can then look forward to a more average-term bearish entry.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.26640
- Invalidation: 1.28276
GBPAUD – H4 Timeframe
GBPAUD has reacted a few times from the overall supply zone on the 4-hour timeframe. Considering the bearish array of the moving averages, I am tempted to align my analysis in favour of a bearish outcome. However, since there is a trendline support hindering further bearish momentum at the moment, I will wait patiently for the break and retest of the trendline before position for a proper sell entry – it’s safer that way.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.89097
- Invalidation: 1.90529
GBPJPY – D1 Timeframe
GBPJPY recently broke below a trendline support as seen on the chart of the Daily timeframe price action shown above. Comparing the current price action with the Fibonacci retracement levels, I want to assume that the current bullish momentum is a an attempt for price to retest the trendline before dropping further. Based on this, I will watch to see how price reacts from the highlighed supply zone, or the 76% of the Fibonacci before positioning for a sell entry.
Analyst’s Expectations:
- Direction: Bearish
- Target: 183.559
- Invalidation: 185.845
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
