In its February meeting, the Bank of England kept interest rates unchanged at 5.25%, the highest in 16 years. While one policymaker advocated for a rate cut, the central bank refrained from signaling any imminent changes, citing the need for further evidence on inflation. With inflation stable at 4.0% y/y in January and the economy emerging from recession, policymakers are cautious about premature rate cuts. BoE Governor Andrew Bailey hinted at potential rate cuts but emphasized the importance of sustained progress in key economic indicators. However, uncertainties remain, particularly regarding wage growth and geopolitical risks.
GBPCAD – D1 Timeframe
The horizontal bars on the Daily timeframe of GBPCAD represents the pivot zone on the weekly timeframe. The sketchy movement as price approaches the pivot zone indicates a loss of momentum for the buys, which could be a crucial trigger for bearish pressure. As a result, I expect price to bounce off the weekly pivot and reach for the trendline support.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.70898
- Invalidation: 1.73567
GBPAUD – D1 Timeframe
GBPAUD has recently broken below the trendline support of a wedge pattern; the impulse also breaking below the previous low. Considering the break of structure, I believe that price should react off the rally-base-drop supply zone at the 88% of the Fibonacci retracement zone.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.93489
- Invalidation: 1.95453
GBPCHF – D1 Timeframe
A basic knowledge of chart patterns informs us that when a pattern is formed close to a crucial support or resistance, we can expect to see a rejection from that particular zone of interest. In the case of GBPCHF as seen on the daily timeframe chart, we can see price currently consolidating in a channel pattern as it approaches the weekly pivot. On this basis, I expect to see a sharp rejection from the pivot once price touches the trendline resistance of the equidistant channel pattern.
Analyst’s Expectations:
- Direction: Bearish
- Target: 1.12621
- Invalidation: 1.13944
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.
