Brad Alexander
FX Large Limited
In a surprise rumour, the Bank of England may not raise interest rates this week.
How will that affect the Pound?
The charts show weakness on GBP pairs, but this may change this week if the Bank of England votes to leave Interest Rates where they are.
The forecast says just that.
EURGBP opened with a huge gap this morning but the gap was filled quite quickly.
If we look at the 4-hour and daily charts, the prevailing direction is bearish and if GBP gets stronger, we may be looking at a nice short trade.
Also, the stochastic oscillator is very overbought.
We see a long opportunity on GBPCHF with price action at the lower trend line.
The stochastic oscillator looks a bit flakey but it is currently oversold.
If you look around various charts, you will see quite a few huge weekend gaps around the Monday morning opening in New Zealand.
You may think that these are great trading opportunities and sometimes they are.
However, if you try it you will notice that the spreads are so wide, you may be quite disappointed when you open a trade, beware.
We were looking at a long trade last time on the DJIA, buying the dip, as the other major indices are bullish.
The dip on the Russell 2000 index of small-cap companies, however, may be in doubt if the next US president follows through on his tariff threats.
Watch this space and we will keep an eye on price action and the news.
Getting back to the economic calendar, we have an incredible amount of opportunities including an Interest Rate Decision from the Bank of Japan.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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