A Pre-Carney Look At The GBP/USD - Forex News by FX Leaders

A Pre-Carney Look At The GBP/USD

Posted Monday, February 19, 2018 by
Shain Vernier • 1 min read

A bit later on today, there is a key economic event facing the GBP/USD. Bank of England (BoE) Governor Mark Carney takes center stage at 1:45 PM EST, delivering a speech on U.K. economics and issues facing the British pound. Due to the U.S. holiday, we are in a position to experience split liquidity and a possible directional move in this market.

Thus far, price action has been tilting to the bear, bringing several key technical areas into play. Let’s dig into the dailies and see about identifying a potential trading opportunity.

GBP/USD Technicals

As of this writing, the GBP/USD is trading in between two key support and resistance levels. If Carney delivers a surprise to the market, we may be in for a breakout in the coming 24 hours.

GBP/USD
GBP/USD, Daily Chart

Here are the key levels for the remainder of today’s holiday session:

  • Resistance(1): Daily SMA, 1.4082
  • Support(1): 20 Day EMA, 1.3953
  • Support(2): Bollinger MP, 1.3934

Overview: As a general rule, I am not in the habit of taking large risks whenever market liquidity is in question. Even though there will likely be a test of either support or resistance on Carney’s commentary, I will be saving my bullets for when the big money returns to the market.

At the moment, the GBP/USD is firmly neutral. Price is in the center of the daily technicals, which can mean an abundance of things. With noncommittal two-way trade from bulls and bears, the sidelines are the place to be until typical forex liquidity returns during the U.S. overnight session.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of