The Pound Is Likely to Continue Up
The GBPUSD was extremely overbought in early October when it traded at 1.34000. Now, the situation has reversed. The pair is significantly oversold after reaching 1.30060 on 10 October. This shift was triggered by Bank of England Governor Andrew Bailey, who signalled a more aggressive stance on interest rate cuts. However, the latest unemployment data, which edged lower to 4.0% from 4.1%, has effectively negated his dovish tone.
From a technical perspective, the Pound has fallen too far, having crossed below a trend support level. There seems to be nothing strong enough to break the uptrend until the US presidential election on 5 November. The BoE is also scheduled to hold its meeting on 7 November.
This presents an attractive upside opportunity for the Cable. I am planning to open long positions at 1.30200-1.30700, targeting 1.32500-1.33000, which suggests the price may continue to follow the trend support. A stop-loss can be set at 1.28300.
Disclaimer:
The comments, insights, and reviews posted in this section are solely the opinions and perspectives of authors and do not represent the views or endorsements of RHC Investments or its administrators, except if explicitly indicated. RHC Investments provides a platform for users to share their thoughts on financial market news, investing strategies, and related topics. However, we do not guarantee the accuracy, completeness, or reliability of any user-generated content.
Investment Risks and Advice:
Please be aware that all investment decisions involve risks, and the information shared on metadoro.com should not be considered as financial advice. Always conduct thorough research, seek professional advice, and exercise caution when making investment decisions.
Moderation and Monitoring:
While we strive to maintain a respectful and informative environment, we cannot endorse or verify the accuracy of all user-generated content. We reserve the right to moderate, edit, or remove any comments or posts that violate our community guidelines, infringe on intellectual property rights, or contain harmful content.
Content Ownership:
By submitting content to metadoro.com, users grant RHC Investments a non-exclusive, royalty-free license to use, display, and distribute the content. Users are responsible for ensuring they have the necessary rights to share the content they post.
Community Guidelines:
To maintain a positive and respectful community, users are expected to adhere to the community guidelines of Metadoro. Any content that is misleading, offensive, or violates applicable laws and regulations will be subject to moderation or removal.
Changes to Disclaimer:
We reserve the right to update, modify, or amend this disclaimer at any time. Users are encouraged to review this disclaimer periodically to stay informed about any changes.
