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XAU/USD

Trading ideas - GBP rebounds agains USD and EUR after BoE statement

Wojciech Matysiak MyFXspot.com

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.

Author

Wojciech Matysiak

MyFXspot.com

Wojciech Matysiak is a chief editor and chief economist of MyFXspot.com, currency market analyst and strategies provider.

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