Type:
Bullish Rise
Key Levels:
Resistance: 1.2631
Pivot: 1.2553
Support: 1.2485
Preferred Case:
With price moving within the ascending trend channel and above the ichimoku cloud, it supports our bullish bias that price will bounce off the pivot at 1.2553 in line with the confluence area with 50% Fibonacci retracement to the 1st resistance at 1.2631 in line with the 61.8% Fibonacci retracement and 127.2% Fibonacci extension.
Alternative Scenario:
Price may break the pivot level and drop to the 1st support at 1.2485 in line with horizontal swing low support.
Fundamentals:
Dovish doses were injected by the BoE Chief Economist Pill and member Tenreyro. The former warned of recession risks from too much tightening, while the latter sought a more gradual approach to tame inflation. We currently have a mixed-to-weak bearish.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.