Trade Plan for the GBP/USD 🇬🇧 🇺🇸 (WN38)
Detail on the orders placed by Jeepson Trading at eToro and 5ers
FUNDAMENTAL AND SENTIMENT SUMMARY
The Monetary Policy Committee (MPC) of the Bank of England (BoE) met last month on thr 4th of August and a decision was made to hike the Bank Rate (Interest Rate) by 50bps from 1.25 percent to 1.75 percent which was as expected. The policy outlook is hawkish as Trading Economics are forecasting it to rise to 2.00 percent this quarter whilst the MPC projects 3.00 percent by Q3 next year in 2023. The next scheduled meeting for the Monetary Policy Committee is this week on Thursday the 15th of September.
More recently, with regards to economic indicators, the CPI rate for the twelve months to August was reported last Wednesday at 9.9 pecent which was below expectations of 10.2 percent and the first inflation easing in eleven months and was led by the fall in motor fuel (32.1 vs 43.7). On Friday, the Retail Sales for July to August was reported at a 1.6 percent contraction which was below expectations of 0.5 percent contraction.
The sentiment that is presently influencing the valuations on the Pound Sterling is the narrative regarding the economic slowdown and how fast it progresses. The recent indicators suggest that the situation is worsening faster than expected, especially with the retail sales contraction at more than a percent below expectation. This is pressuring the GBP/USD to the downside.
The attention of market participant traders is towards the interest rate decision on Thursday which if comes in at the expected 50bps hike or higher will likely push the GBP/USD further into its downtrend.
Trading Economics has climbing forecasts for a lower GBP/USD: Q3: $1.13 (pr. $1.14), Q4: 1.13 (pr. 1.13), Q1: 1.11 (pr. 1.11).
ORDERS
The momentum on the $GBPUSD over the micro-term is bearish and the downtrend has recently been formed from the 1.174 level. The short-term downtrend is falling from its 78.6 percent retracement level and has a possible support area at $1.052.
An order to SELL the $GBPUSD has been placed and will be aborted if the interest rate decision is below 50bps otherwise it will be held to target the 1.12 area and below.
Stop Loss 1.185
First Sell 1.165
Second Sell 1.175
-END DISCLAIMER-
The content provided is intended for informational purposes only. Investments on the forex markets and trading decisions are made at your own risk.