GBP/USD Forecast: Inflation might pushes BOE to delay interest rate hike

GBP/USD 9th April, 2015

GBP/USD (currently at: 1.4785) is still giving a clear downtrend signal. However, the bulls are stronger than I expected and they have enough control till the moment to stay above the near support at: 1.4635. Personally, I can not recommend buying this pair at this level again even with these like-paparazzi attempts to touch the strong resistance around 1.5167 at any price.

We will wait today’s interest rate announcement from the BOE before trading this pair. I am still expecting no serious action from the BOE during April 2015 driven by the (0%) inflation rate in UK during March, 2015. This data is not encouraging to raise the interest rate so, we will have to wait till we see any real change in BOE plan. In addition, Fed. minutes are still mixed and are not giving any clear hint whether the rate hike will be in june, september or even in 2016. Fed. wants to evaluate the economic data every meeting and this will give every future meeting extra importance.

My technical overview is the same and I can not see any reason to buy GBP/USD at this level without falling to 1.4334 level. I recommend buying this pair around this level (1.4334) only and it is recommended to use good stop-loss because it might fall a little bit harder before going up to test any resistance again. Put in mind that if BOE surprised the market and pushed the raise button, we can buy GBP/USD on the break of 1.5167 safely, or wait till we see the market reaction on the surprise

The GBP/USD has the following major resistance and support levels:

  • RESISTANCE: 1.5167
  • SUPPORT: 1.4334

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop-loss applied):

  • Sell: at 1.4900 – Take profit 1.4800 (100 pips profits)
  • Sell: at 1.5140 – Take profit 1.5040 (100 pips profits)
  • Sell: at 1.4800 – Take profit 1.4700 (100 pips profits)
  • Buy: at 1.4340 – Take profit 1.4400 (60 pips profits)

This review is valid during trading week: 9th-15th April, 2015

The Mystery of GBP/USD

GBP/USD 19th March, 2015

GBP/USD (currently at: 1.4730) is giving a clear sign of downtrend. Honestly, I can not recommend buying this pair at this level again. The BOE is not that serious about raising the interest rate this month, we will have to wait April, 2015 to see any signs of a change in BOE plan.

Yesterday, after the dovish statement of the American central bank, I can see a higher probability for strong US dollar the next 2 weeks. My technical overview can not see any serious buyers for the GBP/USD at this level without falling to 1.4334 level. I recommend buying this pair around this level and use good enough stop loss because it might fall a little bit harder before going up to test any resistance.

The GBP/USD has the following major resistance and support levels:

  • RESISTANCE: 1.5167
  • SUPPORT: 1.4334

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop loss applied):

  • Sell: at 1.4730 – Take profit 1.4660 (70 pips profits)
  • Buy: at 1.4350 – Take profit 1.4400 (50 pips profits)

This review is valid during trading week: 21st-25th March, 2015

GBPUSD 4-3-2015

GBP/USD forecast: Critical moves are coming

GBPUSD 4-3-2015

GBPUSD (currently at: 1.5335) is giving the signal of limited bearish move to 1.5195. Honestly, I can not recommend buying above this level. The BOE has a scheduled meeting tomorrow (5th, March) and personally, I am not expecting too much from tomorrow’s meeting, Rate hike is not that close in the UK and if they do it tomorrow, this would be a MARKET SURPRISE that will push everyone to buy GBPUSD and it might travel to 1.5800 in few minutes. However, my technical overview can not see a break to 1.5560 without falling again to 1.5200 level. I recommend buying this pair and use good enough stop loss because it might fall a little bit before going up to break 1.5560

The GBPUSD has the following major resistance and support levels:

  • RESISTANCE: 1.5560
  • SUPPORT: 1.5200

Breaking these levels in any direction will take us higher or lower.

My Daily BUY/SELL advice (30 pips stop loss applied):

  • Sell: at 1.5335 – Take profit 1.5235 (100 pips profits)
  • Buy: at 1.5560 – Take Profit 1.5590 (30 pips profits)

This review is valid during trading week: 4th-6th March, 2015