2021-01-26 • Updated
HSBC wrote in its regular monthly forecast that "the outlook for GBP is not promising, in our view, given the broader underlying flow dynamics". The common consensus was that the pound would rally after the signing of an EU-UK trade deal. However, HSBC thinks oppositely.
The Bank of America agrees with HSBC and points to the cheapness of UK assets in comparison to EU and US. Besides, the pound exchange rates are significantly lower than they were before the EU referendum results in June 2016.
HSBC forecasts GBP/USD will be trading at 1.3400 through this year, while EUR/GBP will rise to 0.94.
EUR/GBP is touching the dips now, therefore we could expect the pair to rise soon. On the weekly chart, the downside is limited by the 100- and 200-period moving averages at 0.8840. Let’s get a closer look and analyze the 4-hour chart. We see that the pair is heading towards 0.8400 at the lower line of the Bollinger Bands indicator, which the pair is unlikely to cross. Therefore, we can expect the pullback to the upside from this level. On the way up, the pair will meet resistance levels at Monday’s high of 0.8885 and the high of January 22 at 0.8920.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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