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GBPUSD 4 HOUR CHART – Waiting for the BOE
My only question is why was GBPUSD bid at this time yesterday with a rate cut looming today.
What caught my eye at this time was the Power of 50 level after a high at 1.25496, so there is a method to my madness.
Note, a clue of a vulnerable GBPUSD, as I pointed out yesterday was GBP weakness vs the EUR and JPY, evident again today.
Back to charts
Move below 1.2463 breaks the upward momentum… back above this level would put 1.25 in play again.
Below 1.2378 would shift the risk back to this week’s low.
Re the BOE, a rate cut is widely expected and will not be a surprise.
Using my planform as a HEATMAP
Dollar is trading firmerm except vs JPY… but well within this week’s wide ranges
USDJPY back above 152 after brief dip below this pivotal level
GBPUSD softer ahead of expected BOE rate cut (note GBPJPY, EURGBP)
Bond yields are higher after plunging yesterday
Stocks are trading slightly firmer
Gold has backed off from yesterday’s record 2882 high… indicator of tariff sentiment?
EURUSD Daily
Supports: 1.04000, 1.03700 & 1.03200
Resistances: 1.04300, 1.04500 & 1.04650
Intraday direction – Up
Possible reach on the Up side – 1.05050
Downside – 1.02700
That 1.02700 is the historical angle that holds the uptrend – once lost we see new low.
On the Big picture – we are in downtrend – as long as it stays below 1.06150
However, unless 1.01800 taken out, EUR can form a bottom here.
Using my platform as a HEATMAP
USD is down across the board, led by the JPY (breaka below 153.70 and 153.14)
Outside week in USDCAD but still above 1.4260
Outside week in USDMXN by just one pip (double bottom around 20.29-30)
EURUSD completes 61.8% retracement at 1.0410 (high 1.0417), next res 1.0434
Gold continues its march into record high territory
Trade war with China heats up, EU threaten retaliation against tech
US stocks slip
US 10 year currently below 4.50%
Using my platform as a HEATMAP shows
It feels like the day after a quick moving storm raced through my town with only damage to those caught in its swirling winds.
With Canada and Mexico getting a one month reprieve, focus was on targeted tariffs announced by China in retaliation to the U.S. levies.
FX shrugged off an initial pop in the dollar while US stocks remain down on the day.
Next up on the tariff hit list is the EU. While EURUSD is holding its bounce, there is a headline risk at any time if Trump’s attention shifts to the EU.
EURUSD has filled its opening week gap at 1.0350, also the bias setter, and only above it would suggest more legs to its rebound.
