The Pound has provided a surge of momentum upwards. Stronger than anticipated inflation data yesterday helped the British currency.
The Pound has provided a surge of momentum upwards. Stronger than anticipated inflation data yesterday helped the British currency. Tomorrow the Bank of England is on the calendar.
For traders with a sense of adventure and speculative courage, the Pound may be the most interesting trade on the board. The Pound rampaged higher on Tuesday as inflation data beat expectations handily.
As of this morning, the Pound is trading above the 1.33 level against the U.S Dollar and traders should expect further tests of its value as the day progresses.
The Bank of England will issue their Monetary Policy Summary tomorrow. And while no one believes the Bank of England will increase its interest rate Thursday, traders’ perceptions will be confronted.
If the U.K central bank admits it will have to consider raising its interest rate early next year, it could add to Pound speculation. The British currency is testing highs not seen since July of 2016.
Even as Brexit concerns shadow the U.K, the Pound has fought its way through various battles and continues to emerge stronger. Resistance appears to be around 1.34 for the Pound and support is likely around 1.32. Risk management is urged for those considering trades of the British currency.
In the short term, we believe the Pound may be negative. Mid-term and Long-term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.
Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.