Looking at my charts, GDP/USD broke a strong area of 1.9720 today. Price reversed at this point on March 26, March 22, Feb. 8, Feb. 1, Jan 3.Just wanted to hear from more experienced people than me if this would be a good buy point if price pulled back down to this area? What other factors would you consider? Thanks.
Right now, market players are pricing in the possibility that the Bank of England will raise rates from the current rate of 5.25% on April 5th. We will probably see a steady rise up for GBP, but there is a lot of data out of the UK to get through before then. So, we may see volatility during those news releases, especially if any data comes out in favor of the Bank of England keeping rates the same.
Let’s remember that broken resistance areas do eventually make good support areas. So, it would be a high probability trade to go long in that area, I would just be cautious of jumping in the closer you get to the interest rate statement.
The sentiment is Sterling long and Dollar short, and this sentiment seems a bit overdone at the moment. I think if we see any kind of data that kills the idea of a rate hike, then we may see the pair drop back down to 1.96 or 1.95.
Thank you for the response. So right now, the expectation of the bank raising rates from 5.25% is whats driving up the GDP pairs? So am I thinking right that this push caused the price to break my assumption of a good resistance? But if rates are unchanged, would this level have a high probability to hold price, or would price just be shifted back to the range of where it was valued before the expectation of the rate hike? Sorry if there is an obvious answer to this and this is a silly question. Im just trying to see how these fundamentals tie in with the technicals. Thanks again.
Im still working on my TA and better making decisions for myself but I am still learning and looking for help about my decisions and what I see.
Its quite simple and short so here it is
On the gdp/usd, price has obviously pulled backed from 2.0130. I do not think though this is not the end of the push higher. But we have conflicts. D1 charts are showing overbought, H4 is showing oversold with h1 neutral. If it were to fall I think the psychological area of 2.000 would hold because this also shows to be the 23.6 Fib on the H4 chart. D1 shows an RSI of 75 which is strong, H4 shows a RSI of 70 and that is strong. Fundamentals show that the BOE will most likely hike interest rates one more time with now concerns the FED cutting instrest rates. Do I have a strong case for a continuation at the 2.000 level? Any comments are appreciated. Thanks.