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Great Britain Pounds Vs US Dollar Sell Opportunity

Great Britain Pounds Vs US Dollar pops up a Sell Opportunity as pair retraces after testing and bouncing off the resistance of the descending broadening wedge chart pattern during the previous week’s trading session as a result of economic data release which weekend the United States Dollar.

Table of Contents

Economic Events On Gbp

BOE Gov Bailey Speaks

Due to hearings from BOE Governor Andrew Bailey at an online event hosted by The CityUK, BOE Governor Mar 2020 – Mar 2028. Volatility is often observed at the time of his speeches as traders attempt to decipher interest rate clues, As being the head of the central bank, who basically controls short-term interest rates has more influence over the nation’s currency value than any other person. Traders scrutinize his public engagements as they are often used to drop important clues regarding future monetary policy, More hawkish than expected is good for the currency.

BOE – Bank Of England

Prelim GDP q/q

This basically measures the change in the inflation-adjusted value of all goods and services produced by the country, There are 2 versions of quarterly GDP released about 45 days apart – Preliminary and Final GDP. This Preliminary GDP is the earliest to be released and thus tends to have the most impact.

It’s the broadest measure of economic activity and the primary gauge of the economy’s health, Data is released quarterly, about 40 days after the quarter ends. ‘Actual’ result greater than ‘Forecast’ is considered good for the currency.

CurrencyForecastPrevious
GBP1.1%1.1%
Source: forex factory

Economic Events On Usd

FOMC Member Mester Speaks

Due to speak about the economic outlook and monetary policy by Federal Reserve Bank of Cleveland President Loretta Mester at an online event hosted by the European Economics and Financial Centre. Audience questions are usually expected from FOMC voting members in 2014, 2016, 2018, 2020, and 2022.

Federal Reserve FOMC members meet together and at the end of the day vote on where to set the nation’s key interest rates and their public engagements are often used to drop relevant clues regarding future monetary policy.

Core CPI m/m

this measure the change in the price of goods and services purchased by prospective consumers, it excludes food and energy. Food and energy prices more often than not account for about a quarter of CPI, but they tend to be very volatile and distort the underlying trend. The FOMC usually pays more attention to the Core data – as well as traders. Consumer prices account for a majority of overall inflation.

Inflation is very important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate, ‘Actual’ result greater than ‘Forecast’ is perceived to be good for the currency. this info is released monthly, about 16 days after the month ends

CurrencyForecastPrevious
USD0.5%0.6%

Conclusion

During the previous week’s trading session, the Great Britain Pounds Vs US Dollar pair tested the resistance of the descending broadening wedge pattern, This is a chart pattern formation identified by technical analysts. It is characterized by increasing price volatility and diagrammed as two diverging trend lines, one rising and one falling. It usually occurs after a significant rise, or fall, in the action of commodity prices.

However Great Britain Pounds Vs US Dollar pair retraces testing the 1.36000 psychological price level thus bouncing off during the previous week’s trading session as a result of economic data release which weekends the United States Dollar, we might consider paying attention to the upcoming economic events as they play a significant role in the future direction of the market

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Broadening Wedge Trading Idea Gbp/Usd.

Broadening Wedge Trading Idea as GBP/Usd pair made a good buy as speculated in our previous analysis thus testing and bouncing off the resistance of the broadening wedge pattern.

Will the pair continue selling or pull back to retest the broken support level? Read through to find out more…

Table of Contents

Economic Events On GBP

Consumer Price Index (CPI):

This typically measures the changes in the price of goods and services purchased by consumers over some months, It is considered to be the United Kingdom’s (UK’s) most important inflation data because it is basically used as the central bank’s inflation target.

The average price of varieties of goods and services are mostly sampled and then compared to the sampling done a year earlier to examine the changes.

Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because the rise in prices of goods and services leads the central bank to raise interest rates out of respect for their inflation containment mandate.

CurrencyForecastPrevious
GBP5.2%5.1%

This information is released monthly, about 16 days after the month ends and if the ‘Actual’ result is greater than ‘Forecast’ then is good for the currency.

BOE Gov Bailey Hearings:

Due to testify, along with BOE Deputy Governor Jon Cunliffe, on the Bank of England Financial Stability Report before the Treasury Select Committee in London,

The Bank Of England Governor (BOE) Mar 2020 – Mar 2028. Volatility is highly experienced during his speeches as investors/Traders attempt to decipher interest rate clues which is a significant insight into the economy.

Being head of the central bank, who controls short-term interest rates, however, has more influence and makes more impact on the nation’s currency value than any other person.

Investors/Traders scrutinize his public engagements as they are often used to drop relevant clues regarding the future monetary policy of the nation.

BOE Governor Andrew Bailey’s hearings, when More hawkish than expected are good for the currency.

Trading Idea Gbp/Usd

Economic Events On Usd

Unemployment Claims:

This basically measures the number of individuals who filed for unemployment insurance for the first time during the previous week, This is typically one of the nation’s earliest economic data events. The market impact however fluctuates from week to week as a result of that.

There tends to be more focus on the release when investors/traders need to diagnose, study recent developments, or when the reading is at its peak, Although it’s generally conceived as a lagging indicator by Investors/Traders, the number of unemployed people happens to be an important index of overall economic health because consumer’s spending is highly correlated with labor-market conditions.

CurrencyForecastPrevious
USD221K230K

Unemployment is also a major consideration for those controlling the country’s monetary policy, it’s often released weekly, usually on the first Thursday after the weekends, if the ‘Actual’ data release is less than ‘Forecast’ then is good for the currency.

Existing Home Sales:

This measure annualized a unique number of residential housing that was sold during the past month, excluding newly constructed ones. While this is monthly data, it’s reported in an annualized format (monthly figure x12) and is also a leading indicator of economic health because the sale of a home stirs up a wide-reaching ripple effect.

Renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid exclusively to execute the transactions, Data is released monthly, about 20 days after the month ends. when the ‘Actual’ outcome is greater than the ‘Forecast’ then is good for the currency.

CurrencyForecastPrevious
USD6.42M6.46M

Trading Idea Gbp/Usd

From our previous analysis, we speculated on the direction of the above chart pattern known as Descending broadening wedge which played out well, Broadening Wedge Trading Idea on Gbp/Usd pair formation is a price chart pattern identified by technical analysts.

It is characterized by increasing price volatility and diagrammed as two diverging trend lines, one rising and one falling.

It usually occurs after a significant rise, or fall, in the action of security or commodities prices. Moreover at the end of Q4 pair traded around the support of the chart pattern which later rallied up as a result of bullish economic data release

Conclusion

GBP/Usd pair has tested and bounced off the resistance of the descending broadening wedge pattern at a high momentum, It is also expected that the pair may pull back to retest the broken support level 1.36500 or 1.37000 before it continues its bearish extension

Great Britain pounds Vs Us Dollars Gbp/Usd may sell tremendously as per the upcoming economic events which is a leading index on a nation’s currency value,

However, utilizing the stochastic oscillator whose SMA’s is heading off overbought level signals that buyers are exhausted therefore closing their long position and that sellers are setting in with their massive short(sell) orders.

What are your thoughts on this Gbp/Usd trading idea? Is it useful? or is it a waste of time? Let us know by commenting on this post or our forum, and be sure to check back in the near future for more trading-related content.

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Great Britain – Us Dollar Analysis GBP/USD.

Great Britain Pounds / Us Dollar pair rallies down as speculated in our previous analysis. This is as a result of positive economic data outcome, released on USD via consumer confidence, and Manufacturing index.

Will the pair rally back up or break down through the support of the symmetrical triangle? let’s find out.

Economic Event On GBP

Flash Manufacturing PMI:

This measures the Level of a diffusion index based on surveyed purchasing managers in the manufacturing or production industry.

Outcomes above 50.0 indicate industry expansion while below indicates contraction. There are 2 categories of this report occasionally released about a week apart – Flash and Final.

The Flash release, which is the source first reported in Nov 2019, is the earliest and thus tends to have the most impact on the economy.

This is a Survey of about 650 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

It’s a leading indicator of economic health – businesses tend to react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

It is Released monthly, around 3 weeks into the current month, if the ‘Actual’ result is greater than ‘Forecast’ then is good for the currency.

CurrencyForecastPrevious
GBP57.257.8

Flash Services PMI:

Measures Level of a diffusion index based on surveyed purchasing managers in the services industry.

CurrencyForecastPrevious
GBP58.659.1

GBP/USD

Great Britain Pounds - Us Dollar 4 Hour Line Forex Chart
Great Britain Pounds – Us Dollar 4 Hour Line Forex Chart

Economic Events on USD

Flash Manufacturing PMI

It measures the Level of a diffusion index based on surveyed purchasing managers in the manufacturing or production industry.

Normally outcomes above 50.0 indicate industry expansion while below indicates contraction. There are 2 categories of this report occasionally released about a week apart – Flash and Final.

The Flash release, which is the source first reported in Nov 2019, is the earliest and thus tends to have the most impact on the economy.

This is a Survey of about 650 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

It’s a leading indicator of economic health – businesses tend to react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

It is released monthly, around 3 weeks into the current month, if the ‘Actual’ result is greater than ‘Forecast’ then is good for the currency.

CurrencyForecastPrevious
USD59.358.4

Flash Services PMI:

This measures the Level of a diffusion index based on surveyed purchasing managers in the manufacturing or production industry.

CurrencyForecastPrevious
USD59.158.7

Pair Observation

Firstly Great Britain Pounds – Us Dollar after our speculation that pair will sell which played out well, Has been making lower highs(LH) and lower lows(LL).

Secondly, The pair throughout the weeks after the speculation sold tremendously with an extension of 200pips after each pullback(LH).

Conclusion

Moreover, During the last trading week, we can clearly observe from the 4Hour chart that GBP/USD pair pulled back(LH) which is already an extension.

However Unlike earlier trading weeks, there was a good momentum due to the economic Events and some investors’ sentiments, this is an insight that the pair may likely change direction.

With the upcoming Economic events via Flash Manufacturing, Flash Services PMI GBP, Flash Services PMI USD.

The pair is expected to test the support level of the symmetrical triangle at 1.33000 resulting in a 200pips move from the pullback(LH) before a bullish reversal. Do you have any contributions or questions? our forum is open.

Daily EUR/GBP Forex Chart

EUR/GBP Market Analysis “Asia London Session”.

EUR/GBP Buy opportunity as pair breaks the resistance of the broadening chart patter on 1-hour time frame. Check out the recent analysis.

Economic Event on EUR

Spanish Unemployment Change:

Change in the number of jobless individuals during the earlier month, This is among the couple of non-occasionally changed numbers investigated in the schedule.

Despite the fact that it’s by and large seen as a slacking marker, the quantity of jobless individuals is a significant sign of generally speaking financial well-being since purchases going through are exceptionally associated with work economic situations.

It is delivered monthly, around 3 days after the month closes, If ‘Genuine’ is not as much as ‘Estimate’ is useful for cash.

CurrencyPrevious
EUR-76.1K

ECB President Lagarde Speaks:

ECB President Nov 2019 – Nov 2027. Unpredictability is regularly capable during her addresses as dealers endeavor to interpret loan cost hints. As the top of the ECB, which controls transient financing costs, she has more impact on the euro’s worth than some other individuals.

Dealers investigate her public commitment as they are regularly used to drop unobtrusive hints with respect to future financial strategy, More hawkish than anticipated is useful for money.

European Central Bank (ECB)

EUR/GBP

EUR/GBP 1 Hour Forex Chart
EUR/GBP Analysis by Chikwem Chinedu Ogugua on Liquiditytradeideas

Economic Event on GBP

Asset Purchase Facility:

The absolute worth of cash the BOE will make and use to buy government resources in the open market.

Source started this program in Mar 2009, because of the monetary crisis, MPC individuals vote on the aggregate sum of cash to make for the program. The singular votes are distributed fourteen days after the fact in the MPC Meeting Minutes.

It builds interest for securities which as a rule prompts lower long-haul loan fees, ‘Genuine’ is not as much as ‘Conjecture’ is useful for money.

CurrencyForecastPrevious
GBP875B875B

This is also known as the quantitative Easing Programme, Money Printing Programme

BOE Monetary Policy Report :

The report gives the BOE’s projection for inflation and monetary development over the course of the following 2 years.

The BOE Governor likewise holds a question and answer session to examine the report’s substance after discharge. In Nov 2019 source changed the report name from Inflation Report to Monetary Policy Report.

It gives an important understanding of the bank’s perspective on financial conditions and swelling – the key factors that will shape the eventual fate of money-related arrangements and impact their loan cost choices.

Delivered quarterly, More hawkish than anticipated is useful for cash.

Official Bank Rate

Loan fee at which the BOE loans to monetary organizations short-term.

The rate choice is typically estimated on the lookout, so it will in general be dominated by the Monetary Policy Summary, which is centered around what’s to come.

MPC individuals vote on where to set the rate. The singular votes are distributed fourteen days after the fact in the MPC Meeting Minutes.

CurrencyForecastPrevious
GBP0.10%0.10%

Transient loan fees are a vital factor in cash valuation – brokers check out most different pointers just to foresee how rates will change later on. Booked month to month, ‘Genuine’ more prominent than ‘Conjecture’ is useful for money.

Conclusion

It’s a call for a short-term long position, EUR/GBP on a 1-hour time frame currently trading a few pips above the broken resistance zone, it may pull back before continuation and the Pair is likely to move more than 150 pips.

what are your thoughts on this trading idea? kindly drop a comment if you have one or visit our forum for related discussion.

GBP/USD Daily Forex Chart

GBP/USD – USD/CHF Market Analysis

Do the pair make a bearish divergence at the resistance of the broadening chart pattern, a selling opportunity for cable, Will the GBP/Usd pair rally down as speculated or break out? Well, let’s find out more through the technical analysis. Read through for more.

Economic News on USD

CB Consumer Confidence:

The ranking of a composite indicator is based on surveyed homes.
review of homes which ask testifiers to rate the relative ranking of current and coming economic conditions including labor accessibility, business conditions, and overall economic situation.

Financial confidence is a leading index of consumer spending, which accounts for a majority of overall economic conditioning.
It’s released monthly, on the last Tuesday of the current month, if ‘Actual’ is higher than ‘Forecast’ is good for the currency.

GBP/USD

GBP/USD Daily Forex Chart
GBP/USD Analysis by Chikwem Chinedu Ogugua on Liquiditytradeideas
Currency ForecastPrevious
USD108.4109.3

Richmond Manufacturing Index:

Ranking of a composite indicator based on surveyed manufacturers in Richmond.
Results above 0 indicate enriching conditions, below indicate worsening conditions. Tends to have a muted impact because there are ahead regional indexes related to manufacturing conditions.

Check of about 55 manufacturers in the Richmond area which asks testifiers to rate the relative ranking of business conditions including shipments, new orders, and employment.
This is released monthly, on the fourth Tuesday of the current month, and if’ Actual’ is higher than ‘Forecast’ is also good for the currency.

CurrencyForecastPrevious
USD4-3

Also known as Richmond Fed Index, Manufacturing Activity Index, and Composite Manufacturing Index.

Pair Observation

Firstly from the daily chart a broadening chart pattern is spotted diagrammed as two diverging trend lines, one rising ‘Resistance’ and one falling ‘Support’, this occurs as a result of that disagreement among investors ‘Buyers(Bulls)’ and ‘Sellers(Bears)’.

GBP/USD

Secondly, it is clear and concise that a bearish divergence formed on the resistance zone of the broadening chart pattern which in turn is considered to be a good entry opportunity for a short ‘Sell’ bias, on the chart Higher highs(HH) and indicator Lower highs(LH).

Technical Indicator:

GBP/USD

GBP/USD Daily Line Forex Chart
GBP/USD Analysis by Chikwem Chinedu Ogugua on Liquiditytradeideas

The stochastic indicator from the daily chart is heading off the overbought level, a key confirmation that sellers art setting in with orders and buyers pulling out. Paying attention to the Economic news update and market structure of GBP/JPY is a necessity as they are positively correlated.

Conclusion

With the technical indicator which signals buyers’ exhaustion and the additional confirmation of the bearish divergence on the resistance of the broadening chart pattern, It is an opportunity for a sell in consideration of the Outcome of the economic news which may serve as a catalyst is positive.

USD/CHF

Pair on a Bull run, pair on a rising channel retraces/ pull back on the support trend-line tests and bounce off the key support level 0.91500.

USD/CHF

USD/CHF Daily Line Forex Chart
USD/CHF Analysis by Chikwem Chinedu Ogugua on Liquiditytradeideas

Economic News on CHF

KOF Economic Barometer:

The rank of a composite indicator is based on 219 economic indexes.
This indicator is designed to forecast the direction of the economy over the coming 6 months. Source changed series computation formula as of April 2006 and April 2014.

Concerted reading of 219 economic indexes related to banking confidence, product, new orders, consumer confidence, exchange rate, money supply, interest rate spreads, stock call prices, and housing.
Released monthly around the end of the current month, if ‘Actual result’ is higher than ‘Forecast’ good for the currency.

CurrencyForecastPrevious
CHF108.6110.6

KOF Leading Indicators, Konjunkturbarometer.

Pair Observation

Firstly From the start of the first quarter(Q1) market has been on a rising/Upward channel diagrammed as two sloppy upward trend lines, one at the resistance ‘Higher highs’ and the other supporting ‘Higher lows’.

USD/CHF

Secondly starting from the third quarter(Q3) market couldn’t break the middle resistance between the main support and resistance channel which resulted in a mini-rising channel where it made higher highs and higher lows within the main support and the middle resistance of the main channel.

Technical Indicator:

USD/CHF

USD/CHF Daily Forex Chart
USD/CHF Analysis by Chikwem Chinedu Ogugua on Liquiditytradeideas

The stochastic indicator is currently heading off the oversold level which indicates that buyers ‘bulls’ are taking over to drive the pair back to the top.

It’s a necessity to pay attention to the market structure and economic news on USD-based pairs for they will be an insight into USD/CHF behavior.

Conclusion

The pair tested the key level 0.91500 which is the support of the rising channel then bounced off, with the signal from the indicator and price action pair will rally back up.

It’s a call for buy ‘Long position’, pair may break the middle resistance if the Economic new release plays out well.