What is Fundamental Analysis? Fundamental analysis is a way of looking at the forex market by analysing economic, social, and political forces that may affect currency prices. The idea behind this type of analysis is that if a country's current or future economic outlook is good, its currency should strengthen (Baby Pips - babypips.com/learn/forex/fundamental-analysis)
What is Technical Analysis? Technical analysis is the study of historical price action in order to identify patterns and determine probabilities of future movements in the market through the use of technical studies, indicators, and other analysis tools (Forex.com forex.com/en-uk/education/education-themes/technical-analysis/understanding-technical-analysis/) Technical analysts look for similar patterns that have formed in the past and will form trade ideas believing that price could possibly act the same way that it did before.
From the chart above, you can see how key fundamental news created incredible volatility in the market but the underlying technical analysis was still intact. From this, we can gather that although fundamental analysis is important, technical analysis is just as important.
See charts below to identify how we could have traded the key fundamental moments over the past few years.
See links below for more trade ideas and in-depth analysis!
Thank you for posting. One thing I realise from this is that the pound keeps trying to be bullish unless it’s let down by its country leaders/ disaster which then entail a bearish drop..
WicktatorFX
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@Jesstradesfx, I know right! And it's looking like another major event is soon coming. Everything is up in the air at the moment!
@Symboh, The Pound would be a very strong currency if the country wasn't run by baboons >.< hahaahaha
Symboh
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@Jesstradesfx, Indeed! Still amazed its had this uptrend really, but that is mostly driven by the dollar weakness. Will be interesting to see what happens as countries start their covid recoveries and Brexit reality becomes more and more apparent, despite the baboons attempts to completely ignore it.
Sophiaelias
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Thank you so much. It’s very clear and easy to understand.
WicktatorFX
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@Sophiaelias, You're very welcome Sophia! Glad you found it helpful :)
Apatura
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so general prices go up, buying power of the pound gose down, I noticed that in 2016 after the Brexit announcement gold and silver prices went up by like £300 per OZ a high demand ensued followed by low avalable supply.