EUR/GBP at key levels before the BoE meeting today

02.11.2017 / 09:29

Rating:

EUR / GBP Our expectations:

Key levels of support and a pin bar create probability of bullish sentiment. We remain cautious about a false breakout below 0.8720 to position ourselves with long positions on the market. The Pin Bar is at levels of horizontal support and 200SMA, which supports the bullish sentiment. The price above the base of the pin bar or 0.8800 will also signal the possibility of long. SL should be below the bottom shadow of the pins or at 0.8700.

Alternative scenario: Break below support and closed bar below 0.8720 will activate the Head & Shoulders formation and in such a scenario the short positions will be more logical.

Attention: Today is the BoE interest rate meeting at 14:00 and Mark Carney's speech at 14:30, when there will be increased volatility. The almost certain increase in interest rates today may already be in the price. Carney will find it difficult to declare a smooth new interest rate hike, and this creates the likelihood of a decline in the pound.

Trader Nikolay Georgiev

Varchev Traders

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EUR/GBP at key levels before the BoE meeting today

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