Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.
What To Expect From GBP Today
2023-11-10 • Updated
The Pound exhibited a mixed performance due to limited fresh UK data, leaving it susceptible to external influences. Bank of England (BoE) policymakers, including Governor Andrew Bailey and Chief Economist Huw Pill, adopted a more hawkish stance, suggesting a 'higher for longer' narrative on interest rates. However, the Pound faced constraints in its upside potential as a cautious market sentiment hindered its rise against safer currencies. Lingering concerns about the UK economy's health further dampened the Pound's movements, despite BoE's monetary policy assertions. The upcoming GDP reports today, with a forecasted decline of 0.1% in the third quarter, could intensify fears of a UK recession, potentially leading to substantial selling pressure for GBP.
GBPJPY - H4 Timeframe
GBPJPY is currently trading within the Pivot zone on the Daily timeframe and has been rejected off the zone twice recently. On the 4-Hour timeframe, we see that price has created a supply zone inside the higher time frame Pivot zone, which serves as an additional confluence for entry. As a result of this confluence, I will wait until price reaches the 4-Hour supply zone before seeking to short GBPJPY.
GBPUSD - H4 Timeframe
GBPUSD on the 4-Hour time frame is currently resting on a support trendline, and a rally-base-rally demand zone. It is also important to note the bullish array of the moving averages. All these confluences tend to point in favour of a bullish reaction from the highlighted demand zone.
GBPAUD - H4 Timeframe
On the 4-Hour chart of GBPAUD, we can see that price has just broken a previous high, and seems to be heading for the highlighted high in the attached chart. For the time being, I do not see sufficient reasons to take a short entry, so I will sit still until price reaches the supply zone, and there we can watch for a reaction that confirms the intention of price to go lower.
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Bearish Scenario: Selling below 22.65 with TP1: 22.34 (intraday) and TP2: 22.02 (swing). Bullish Scenario: Buying above 22.70 with TP1: 22.90.
Intraday and swing scenarios based on price action and volume profile.