Trading ideas - GBP rebounds agains USD and EUR after BoE statement
|The pound rebounded against the dollar and the euro on Thursday after the Bank of England kept interest rates on hold but a vote for a hike by its chief economist heightened expectations that it could tighten policy at its next meeting in August.
The EUR/USD recovered from its weakest level since July 2017. We have cancelled our EUR/USD sell order.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: EUR/USD dives to set a new marginal year low, but EUR/USD bears are unlikely to register a daily close below the previous 2018 1.1510 low posted on May 29 to weaken the structure further. We have cancelled our sell order for now.
GBP/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: A major shake-up of the shorter-term charts with hourlies and dailies transformed by a solid rebound out a new 2018 1.3102 low. There is a potential for a strong hammer candle today but Friday action will now be key. We stand aside.
USD/JPY
Trading strategy: Long
Open: 110.30
Target: 111.90
Stop-loss: 109.50
Recommended size: 2.07 mini lots per $10,000 in your account
Short analysis: The USD/JPY found support at 109.55 on Tuesday, which is ahead of the 109.51 Fibonacci level, 50% retrace of the 108.12 to 110.90 (May to June) recovery. The subsequent recovery has fallen far short of a June 15 110.90 peak test. The immediate focus is on 110.38 Fibo, 61.8% of the 110.90-109.55 drop.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Today's volatility was low and doji candle forms on today's chart. A continuation of upward move is likely in the near term. We stand aside due to trade tensions risks.
AUD/USD
Trading strategy: Sell
Open: 0.7480
Target: -
Stop-loss: 0.7570
Recommended size: 1.36 mini lots per $10,000 in your account
Short analysis: The AUD/USD is near key support level of 61.8% Fibo of 2016-2018 rise (0.7327). We should expect a recovery attempts here, but the outlook remains bearish. We keep our sell-on-upticks strategy, but raised our order to 0.7480.
EUR/GBP
Trading strategy: Short
Open: 0.8750
Target: 0.8630
Stop-loss: 0.8810
Recommended size: 1.88 mini lots per $10,000 in your account
Short analysis: We saw another rejection of above-0.8800 levels today. Hawkish statement from the Bank of England supported our bearish EUR/GBP view. The pair is back below 14-day exponential moving average.
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