Investors were bullish on GBP until a few weeks ago. The main drivers behind the bullishness were Brexit and reduced concerns about Covid-19 infections. However, the tide seems to have turned around, at least for now. The sterling has declined for two consecutive months, for the first time since the pandemic began. Some major investors are keeping a bearish or neutral view. The ‘Freedom Day’ doesn’t seem to have gone down well with the investment managers, as corona related infections are skyrocketing.

The Bank of England’s (BOE) monetary policies should be declared in two weeks. The dovish comments from BOEs officials have already prompted investors to shift investments to Euro. However, an interest rate hike or any pointers to the tightening of rates in 2022 can send the pound soaring.

The Week Ahead:

USD

On Tuesday, the FED interest rate decision will be released. The expected value is 0.25 %. If the actual value is more than 0.25 %, we expect the USD to appreciate.

EUR

On Friday, the CPI data will be released. The expected rate is 0.8 %. If the actual value is more than 0.8 %, we expect the EUR to appreciate.

CAD

On Wednesday, the CPI data will be released. The expected value is 2.4 %. If the actual value is more than 2.4 %, we expect the CAD to appreciate.

US Indices

DOW – Price has touched the all-time high of 35090 and reversed. Price can fall to 34634 soon, if the current bearish momentum continues.

GOLD & Silver:

It is possible that the price of Gold could soon drop to 1783.

Setups for this week:

GBPJPY

Primary View:

1. The immediate resistances are near 152.862 and 155.112

2. The immediate support is near 150.082

3. Current price seems good for potential buyers

4. Entry on pullback is also possible by keeping the stoploss below 150.082

5. Targets could be 152.862 and 155.112

Alternative View:

If the price moves below 150.082, we may see a further downside

USDJPY

Primary View:

1. The immediate resistances are near 111.066 and 111.245

2. The immediate support is near 109.379

3. Current price seems good for potential buyers

4. Entry on pullback is also possible by keeping the stoploss below 109.379

5. Targets could be 111.066 and 111.245

Alternative View:

If the price moves below 109.379, we may see a further downside

XAUUSD

Primary View:

1. The immediate resistances are near 1809 and 1824

2. The immediate support is near 1783.78

3. Current price seems good for potential buyers

4. Entry on pullback is also possible by keeping the stoploss below 1783.78

5. Targets could be 1809 and 1824

Alternative View:

If the price moves below 1783, we may see a further downside

Share.

About Author

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

Comments are closed.