Top Trade Setups To Watch Today – Speeches In Focus

Posted Tuesday, November 28, 2017 by
Arslan Butt • 2 min read

Welcome to another pleasant morning. Today's economic calendar is all about speeches. Though it was a slow start to a busy week, the volatility is on its way. It's better to look at profits on an intra-day basis rather than looking for swing trades unless the fundamentals are clear. Here is what we need to look for today…


Top Economic Events Today

Today we need to monitor the economic events coming out from the US and UK.


Great Britain Pound – GBP  

Bank Stress Test Results – The day starts with the stress test results, coming out at 7:00 (GMT) today. This is a yearly figure that is not discussed a lot. The stress test applies artificial market conditions to the balance sheets of big banks in an attempt to define the banks' stability and capital reserve adequacy.  The outcome of the bank stress test will be released indicating the banks that passed and the banks who failed.

We won't see any volatility unless the majority of the banks fail the test. Then, these banks have to fulfill the minimum capital requirements.


BOE Gov Carney Speaks – At 7:30 (GMT),  Mark Carney is due to hold a press conference about the Financial Stability Report and Bank Stress Test Results, in London. BOE Financial Stability Report is also coming out at 7:00 (GMT).


U.S. Dollar – USD

At 14:15 (GMT), the FOMC Member Dudley is due to deliver opening remarks at the annual conference on the evolving structure of the US treasury market, hosted by the Federal Reserve Bank of New York.


Fed Chair Designate Powell Speaks- At 14:45 (GMT), Powell is scheduled to testify on his nomination as the Federal Reserve Chair before the Senate Committee on Banking, Housing, and Urban Affairs, in Washington DC.


Treasury Sec Mnuchin  is expected to speak at the annual conference on the evolving structure of the US treasury market, hosted by the Federal Reserve Bank of New York at 20:45 (GMT)    


CB Consumer Confidence – The Conference Board Inc. will be releasing the figures at 15:00 (GMT). Consumer's confidence is forecasted to fall to 123.9 while it was 125.9 in the previous month.


New Zealand Dollar – NZD

RBNZ Financial Stability Report will be monitored at 20:00 (GMT). It provides insight into the bank's view of inflation, growth, and other economic conditions. These views are sure to affect interest rates in the future. Since the report comes out semi-annually, we can expect some volatility upon its release.


Top Trade Setups To Watch Today


GBP/USD – Bullish Channel

The Sterling is heading bullish, following the bullish channel. The bullish channel started at $1.3075 and continued to the $1.3300 zone.  On the 4 – hour chart, the Stochastic RSI is holding at 7, making the pair oversold. That's our first bullish signal.

GBPUSD - 4 - Hour Chart - ChannelGBP/USD – 4 – Hour Chart – Channel

Besides that, the 50 periods EMA is supporting the bullishness of the pair while the GBP/USD is still holding above it.


GBP/USD – Key Trading Levels

Support     Resistance

1.329    1.3363

1.3263    1.3409

1.3217    1.3436

Key Trading Level:    1.3336


GBP/USD Trading Plan

I'm looking to stay bullish above $1.3300 with a stop below $1.3275 and take profit of $1.3375. Good luck traders and check out our Forex Signals Brief for Nov. 28 for insights about today's forex trading signals.

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