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Monetary Policy Divergence Still The Main Theme In GBP/USD

Published 10/08/2016, 12:23
GBP/USD
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GBP/JPY
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UK100
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Richard Perry, Market Analyst at Hantec Markets, joined the Tip TV Finance Show to offer the technical outlook on GBP/USD, GBP/JPY, and the FTSE 100, also joined by Mike Ingram, Strategist at BGC Partners, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.

Highlights:

“GBP/USD – monetary policy divergence still the main theme. BOE McCafferty (hawk) suggested prospects of further easing would add fuel to the fire.”

“Break down below 1.3060 was a key development. On the hourly charts, 1.3060-1.31 is a potential selling area. However, interim rally cannot be ruled out before further sell-off. A Pop would be selling opportunity.”

“GBP/JPY – Momentum indicators negatively configured across the board. Over 30% decline in one year already. Re-test of 128.30 certainly a possibility.”

“FTSE 100 weekly – 6870-6900 was massive resistance in the 2013-2014 period. We hit that yesterday and came off..”

“A near-term correction an opportunity to buy as the momentum remains very strong. Support at 6612. Inverse head and shoulder breakout could give us a test of 7K levels.”

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