The range of the quote GBP / USD is at risk compared with the rates decision by the Bank of England
A Bank of England liabilities could lead to breaking the current range putting the quote on a new route and canceling positions ahead. Wait until the publication minimize the risks and considering the relevance of the risk event, most likely shown a price immutability of activity towards the ad.
How stable is the range of trading GBPUSD?
• Levels to consider:
- Roof of the range: 1.6760 (Fibonacci, Pivot)
- Floor Range: 1.5800 (Range, Fibonacci, Pivot)
• Concerns with regard to sovereign debt rating in the UK and the Bank of England is reluctant to end its quantitative easing efforts have led to the pound sterling to a lower level. The U.S. dollar has begun to find favor because the fundamental improvement in the U.S. are increasing the possibility that the Fed raise rates at year end. The highest expectations of performance have begun to belittle the role of reserve currency as the currency of funding.
• The trading GBP / USD had been in sharp decline before getting close to the support of the wider range. The hammer candle yesterday may signal a decline or a sharp increase based on the characteristics of the patterns. Fibonacci support at 1.5756 to 38.2% from 1.3653 – 1.7050 can limit the risk of falling as it did in early October.
Suggested Strategy
• Long position: A 1.6050 admission confirms that the Japanese candle hammer was a change in trend. A second possibility is 1.5950 after a failed test of 1.5800
• Stop: Establish the stop to 1.5959, the closing of the hammer as a break below would nullify their significance. To ensure usefulness, move the stop on the second lot to breakeven when the first goal is reached.
• Objective: The first objective is 1.6181-high of 29 January. The second is 1.6460 – high of 19 January.
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