Morning Brief, Nov 1 – Top Forex Trade Setups and Economic Events

Posted Thursday, November 1, 2018 by
Arslan Butt • 2 min read

In this update, we will discuss:

  • The Bank of England’s inflation report and how it’s going to impact the market.
  • The Bank of England’s monetary policy decision, especially the MPC official bank rate votes.
  • Trade setups on GBP/USD and USD/CAD to capture quick trades.

On Thursday, the Greenback soared to its highest level in 16 months as bulls jumped in the market after Treasury yields extended their overnight gains. As you know, this week is also important because of the US non-farm payroll. On Wednesday, the US private sector payrolls increased by 227K in October, the highest in eight months, boosting the rate hike sentiments.

Major Forex Setups & Economic Events Today

 GBP/USD – The Breakout the Downward Channel  

On the 4 -hourly chart, the cable violated the psychological resistance level of $1.2800 to come out of the bearish channel. Looks like the pair is taking a bullish reversal, however, we can’t say much until the release of monetary policy from the Bank of England.

 

Technically, the GBP/USD is likely to face a strong resistance near 1.2860, which is extended by 50 periods EMA. The pair is already above double top resistance 1.2835, which is now working as a support. You can see a doji pattern right below the EMA and above the support which is sort of confusing to investors. Looks like the investors will be waiting for the Bank of England rate decision before placing any major trade.

Bank of England’s Monetary Policy Decision

At 12:00 (GMT), the Official Bank Rate rate will be monitored. Honestly, the odds of a change in rate are almost 0%. BOE is widely expected to keep the rate on hold at 0.75%.

So what’s there for us to trade?

Well, my friends, it’s the MPC Official Bank Rate Votes. The BOE MPC meeting minutes include the interest rate vote for all MPC members from the most recent meeting. The division of votes presents an insight into which members are shifting their stance on interest rates and how the committee will determine a rate change in the future. For the moment, the votes are 0-0-9, it means, all the members are expected to vote to hold the rate.

Daily Technical Levels

Support     Resistance

1.2706    1.2835

1.264    1.2897

1.2511    1.3026

Key Trading Level:    1.2769

GBP/USD  – Market Sentiment

Weekly – Stong Buy

Daily – Strong Buy

Hourly – Buy

 GBP/USD – Trade Plan

Today, the idea is to stay bullish above 1.2770 to target 1.2880. while selling is preferred near 1.2915 today.  

 

 USD/CAD – Canadian GDP Surprises With a Rise

On Wednesday, the Statistics Canada reported a rise of 0.1% growth in the Canadian economy. With this, Canada’s economy expanded for a seventh consecutive month, led by crude oil and financial services, holding the momentum and going for higher interest rates.

At the moment, the USD/CAD is trading in a bullish channel which is supporting the pair near $1.3150 along with a resistance at $1.3175. The 20 and 50 periods EMA are also supporting the bullish trend of the pair.

Daily Technical Levels

Support     Resistance

1.3121    1.3183

1.3083    1.3208

1.3021    1.327

Key Trading Level:    1.3146

USD/CAD- Market Sentiment

Weekly – Stong Buy

Daily – Strong Buy

Hourly – Buy

 USD/CAD – Trade Plan

Today, the idea is to stay bullish above $1.3120 to target $1.3170. Fellas, the violation of $1.3170 can help us capture more buying until $1.3195.

Good luck and stay tuned to FX Leaders for more updates and trading signals.

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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