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Pound/Dollar: Correctional Phase on the Daily

Hourly

My GBP expectations didn’t ring true. All pound crosses were in the hands of the buyers. As soon as the euro/pound dropped, the pound/dollar upped it to 1.5144. The price returned back, but in Asia the pound renewed to 1.5185.

It’s possible the jump this morning was caused by expectations regarding the UK’s labour market reports. It does have a real effect on the pair and in addition: Carney is set to speak at 12:30 EET. I can’t say anything about what the reaction will be to his speech, but he might not mention monetary policy.

If the pound manages to not drop due to Carney speaking and the labour market reports, there’s not much worth expecting until Thursday when the Americans’ holiday has finished. I’ve made two different scenarios taking the stats into account.

Hourly Graph

Daily

The GBP has bounced from the support (line from 1.5229-1.5164-1.5106 minimums). The pair has flipped into a correctional phase that is likely to last for a few days. A growth above 1.5150 isn’t what we want so we just need to wait for the day to close. For the moment, look at any rise in the rate as something correctional.

Daily Graph

Weekly

The pound has flipped into a correctional phase on the daily. On the weekly there’s no change though. The closest target is 1.4900.

Weekly Graph

12 November, 08:09 (GMT+3)
Euro/Dollar: Likely Growth to U3

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Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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