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.
Will CPI release help the GBP?
2023-08-15 • Updated
UK basic wages have experienced a record growth rate, prompting concerns for the Bank of England (BoE) over persistent inflation pressures despite 14 consecutive interest rate hikes. While the unemployment rate unexpectedly rose to 4.2%, basic earnings increased by 7.8%, the highest in records from 2001. Annual pay growth, including bonuses, accelerated to 8.2%, the fastest outside the pandemic period. Economists predicted smaller pay increases. This situation has implications for BoE rate changes, with rising bond yields and speculation about further hikes, even though BoE Governor Andrew Bailey has hinted at a pause.
GBPJPY - D1 Timeframe
GBPJPY is trading within a wedge pattern, with its most recent reaction coming from the trendline support of the wedge pattern. Considering this, I am more inclined to favor the bullish movement while we wait for the price to reach the supply zone on the weekly timeframe. This kind of scenario is what I refer to as a ‘buy-to-sell setup.’
GBPNZD - D1 Timeframe
GBPNZD is still within the supply zone and possibly headed for the trendline resistance up top. If this were to play out, we could expect GBPNZD to be bullish while we wait for a clear reaction from the trendline resistance as a signal for the commencement of the selling scenario.
GBPAUD - D1 Timeframe
As indicated by the horizontal lines, the weekly pivot is a crucial area for the price. Considering the presence of a trendline resistance within the pivot zone, we can expect an increase in the likelihood of a reaction from the zone. In this scenario, though, as previously discussed, we must wait for a clear indication of a bearish on-set.
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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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.