Speculative Conditions Expected for Pound

The Pound may prove to be the most volatile major currency this week. Bank of Governor Mark Carney will be speaking tomorrow to the British Treasury. Traders should expect volatile and speculative conditions the next twenty-four hours of trading for the Pound.

Pound Traders Should Expect Hornet’s Nest

The Pound could prove to be a dangerous hornet’s nest against the U.S Dollar this week in forex. The British currency is trading near the important 1.33 level and has shown strength the past few trading sessions.

Lurking in the shadows is tomorrow’s appearance by Bank of England Governor Mark Carney who will testify before the British Treasury’s Select Committee.

Speculative Elements Remain

Carney will be asked tough questions regarding monetary policy and his outlook for the U.K economy. Many investors have already priced an interest rate hike from the Bank of England into their trading.

The Pound’s solid rise in value and its highs in mid-September indicate speculative elements will be ready to pounce tomorrow, and volatility should be expected.

Rollercoaster Ride for Pound Traders Expected

The Pound may have a short-term resistance near 1.34 against the U.S Dollar and support around 1.31. And traders will need their risk management skills ready the next twenty-four hours.

The Pound is certain to be extremely volatile and short-term trading will rule the day. A rollercoaster-like ride will happen as Mark Carney shares his insights and tries to give subtle clues about the direction for the Bank of England.

In the short term, we believe the Pound may be positive. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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