Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
EUR/GBP: will it break the channel's roof?
Information is not investment advice
While the Brexit talks are going at minimum speed and the time is running away, EUR/GBP offers interesting layout to trade.
On the H4 chart below, you will see that since the middle of September, the pair has been slowly descending from the heights above 0.92 to the current area above 0.91. At the moment, it is challenging the downtrend’s upper border at 0.9110. If bulls succeed to break it, the resistance of 0.9150 will be the next target. However, only reaching 0.92 would mean that the downward channel is broken.
The alternative scenario is the downward bounce. In this case, EUR/GBP will go down all the way from 0.9110 to at least 0.9040. In fact, 0.90 would be a more likely center of gravity for bears.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.