Will BOE support GBP?
Today, the Bank of England has decided to raise interest rates to combat inflation. In its recent report dated the 3rd of August, 2023, the BOE confirmed that it had raised interest rates to 5.25%, expecting that the inflation rates would drop to 2%. Inflation remains a major concern, at 7.9% in June, four times the 2% target. However, the warnings that the Bank's rapid rate increases could trigger a recession have not moved a muscle, and the Trades Union Congress has called for borrowing costs to remain unchanged.
GBPJPY - D1 Timeframe
As I mentioned in my previous article, GBPJPY has given the initial reaction I was expecting to see. There has also been a minor break and retest on the lower timeframe leading to the swift breakdown of the bullish movement. I don’t expect the interest rates by the BOE to hold much sway over the technical analysis.
Analyst’s Expectations:
Direction: Bearish
Target: 174.671
Invalidation: 184.168
GBPAUD - D1 Timeframe
GBPAUD is still in the supply zone, though the initial rejection move has already been completed. This means we can expect the price action to drop further down, possibly till the marked support area is reached.
Analyst’s Expectations:
Direction: Bearish
Target: 1.87287
Invalidation: 1.94012
GBPNZD - D1 Timeframe
GBPNZD slowly created a channel inside the supply zone on the weekly timeframe. This means we should begin to see price glide down to test the trendline support before any possibility of a bullish scenario may present itself.
Analyst’s Expectations:
Direction: Bearish
Target: 2.05658
Invalidation: 2.09425
CONCLUSION
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