No change to Cable, which has flat-lined since the breakout. A minor reaction following a breakout indicates a strong market. Additional sideways trade can’t be dismissed but realize that the reaction low after the breakout is 1.2755. That low represents a re-test of the December high (former resistance providing support…which is bullish). more...
Prime Minister Theresa May announced that general elections would be held early, on June 8th of this year. The move was largely applauded as cogent political strategy in the effort of gaining a Conservative super majority to push through Brexit negotiations. And this very much may be the case; but given the volatility seen in global elections over the past year, it would seem that a bit of reservation should be due before any long-term prognostications are built based on early polling numbers. ...
Trading the News: U.K. Consumer Price Index (CPI) The U.K.’s Consumer Price Index (CPI) may spark a limited reaction as the headline is projected to hold steady at an annualized 2.3%, but a downtick in the core rate of inflation may weigh on GBP/USD as it encourages the Bank of England (BoE) to preserve a wait-and-see approach for monetary policy. What’s Expected: Why Is This Event Important: ...
Bulls of GBP/USD will be encouraged by a well-defined pennant formation on the daily chart (see below), a continuation pattern that points to further strength after the pair’s climb from 1.2113 on March 14 to 1.2613 on March 27. If the formation works as it should in theory, a break to the upside above 1.2465 in a few days’ time could lead to an advance equivalent to the height of the “flagpole” – that five-big-figure advance between March 14 and March 27 – taking it to 1.2965. ...
British Prime Minister Theresa May will invoke the Article 50 of the Lisbon Treaty next Wednesday, March 29, thus formally beginning the process of exiting the European Union. more...
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