We have outlooked several promising Forex pairs and the result can surprise you!
GBP/USD: levels to trade
Information is not investment advice
GBP/USD has been consolidating between 1.30 and 1.2770 for the past month. The pair met resistance in the 1.2920 area (resistance line connecting October and November highs). A break above this level is needed to make the uptrend resume and allow the price to retest the 1.2970/1.30 zone. Only a close above 1.30 will allow the pound to head towards 1.3170 (50% Fibo of the 2018-2019 decline).
If the resistance is too hard an obstacle for bulls to break, the pullback below the MAs on the H4 at 1.2848 will open the way down for a decline to 1.2770 (November low). Notice that the 50-week MA is at 1.2730 - this makes it strong support.
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.