Sterling: UK CPI, Retail Sales next.Neutral Bias
The biggest change last week was Sterling. It bounced about 200 pips from the low 1.5030
The main reason is come from risk Aversion and profit taking. Lack of US and UK data contributes to this correction.
However, with the return of US and UK data, this week promises there will a significant move for GBPUSD.
UK CPI on Tuesday is the main focus. I have no idea for this data, but I think BOE has right reason to cut inflation forecast.
I concentrate to analyze Technical Analysis.
Look at on the chart, I draw a double top pattern on the chart. Why do I draw it while this price action occured in the past ?. The reason is the neckline of this pattern plays the role as a meaningful resistance level.
I see a Doji star locates right at the neckine 1.5240, it proved the correction of GBPUSD could stop at there.
Look at on the bigger picture, A descending channel is capturing price action, GBPUSD sideway in this channel and we should watch careful the channel.
In my opinion, SHORT Sterling is better LONG , USDollar is favourite than Sterling, and I maintain the bearish bias.
The main reason is come from risk Aversion and profit taking. Lack of US and UK data contributes to this correction.
However, with the return of US and UK data, this week promises there will a significant move for GBPUSD.
UK CPI on Tuesday is the main focus. I have no idea for this data, but I think BOE has right reason to cut inflation forecast.
I concentrate to analyze Technical Analysis.
Look at on the chart, I draw a double top pattern on the chart. Why do I draw it while this price action occured in the past ?. The reason is the neckline of this pattern plays the role as a meaningful resistance level.
I see a Doji star locates right at the neckine 1.5240, it proved the correction of GBPUSD could stop at there.
Look at on the bigger picture, A descending channel is capturing price action, GBPUSD sideway in this channel and we should watch careful the channel.
In my opinion, SHORT Sterling is better LONG , USDollar is favourite than Sterling, and I maintain the bearish bias.
