So I’m very new to this, and was just glancing at an economic calendar about a half hour ago, and noticed that the BoE was about to announce any interest rate changes. So i opened up a chart and took a quick look at the GBPUSD just to get a feel for it. I put a Pivot point indicator on the chart and noticed that it was already trading well about the PP and was very near the R1 value. Come the announcement of the internest change, they kept it at 0.5%, so I eagerly after seeing this opened up a short position assuming that the GBP would tumble down somewhere close to the PP, yet instead it roared up to 1.6000, and that’s 75 pip (of fake money ) down the drain.
Here he has mentioned “it was already trading well about the PP”. I really wonder what it means. I presume that he was meaning “above the PP”. I would like to inform him that there is a direct connection between interest rates and stock exchange fluctuations. When banks decrease interest rates then the value of shares will increase. Similarly the value of shares will decrease if banks increase interest rates.
Tomorrow the Bank of England will release their latest Interest Rate Decision and the consensus seems to be that they will keep it at 0.5% that it’s been at since March 2009.
) down the drain.