Pound pairs could be in for an exciting week since the BOE statement is comin’ right up! Take a look at these plays on GBP/JPY, EUR/GBP, and EUR/JPY.
Consolidation is still the name of the game for EUR/JPY as the pair failed to gain enough bullish momentum to break past its triangle resistance.
Not all hope is lost for buyers, though, as the pair could bounce off support once more and make another attempt to break higher. After all, ECB tapering expectations are still in play and the outcome of the US NFP release might mean volatility for global bonds and the yen.
- WO: 130.02
- Top WATR: 131.09
- Bottom WATR: 128.96
- PWH: 130.44
- PWL: 129.02
Ha! I knew I should’ve been more patient in waiting for a pullback on Guppy. Price previously broke below a double top neckline on its short-term time frames and I was too eager to short at market that I missed a better entry point.Still, it looks like the broken support has held as resistance and is putting the pair on track towards falling back to its latest lows. If you’re trading this one also, make sure you keep close tabs on the upcoming BOE decision and the U.K. PMI readings.
In their previous announcement, the BOE surprised the markets with more votes to hike than expected. However, data hasn’t been so impressive since then, which could lead some members to scale back their hawkish views.
- WO: 145.33
- Top WATR: 146.77
- Bottom WATR: 143.90
- PWH: 146.75
- PWL: 144.06
I’m also keeping an eye out for this potential EUR/GBP pullback as the pair’s rising channel remains very much intact. I’m still under the impression that the ECB is more likely to taper before the BOE is able to hike rates since the latter has Brexit issues to contend with.
However, I’m also thinking that the pullback could be shallow on this one if the BOE sounds less upbeat this week. On the other hand, reiterating their optimistic views on inflation could mean more gains for GBP and even a break below the pair’s channel support.
- WO: .8946
- Top WATR: .9015
- Bottom WATR: .8877
- PWH: .8990
- PWL: .8737
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