So yesterday BoE and mark Carney rate decision kept everyone off until the trigger was pulled, I hope u hauled more than 300 pips dumping the pound though. They not only cut their interest to record 0.25% but they increased their Asset Purchasing facility to 475B per year. Further easing meant the pound tanked and well, that has been the trend this year so it came as no surprise. In my analysis, I expected the same to happen to this pair but unfortunately, SL were hit after that Gold rally upwards and this being a commodity currency, the NZD, AUD all appreciated.
Today is NFP day and historically, it tends to produce a lot of whipsaws. Analyst expect July’s job to increase only by 180K with unemployment dropping back to 4.8% and hourly earnings increasing by 0.2%. We shall however have to wait and see what happens today but my general view is to short this pair according to the following trade plan:
At the moment price action is trending at yesterday’s high in the 15 min chart and our plan is to short now and target the Fibonacci 161.8 Extension at 0.71 for a 100 pip move down after NFP, so here is the plan:
Have a good trading day and nice weekend.