The Pound has provided a surge of momentum upwards. Stronger than anticipated inflation data yesterday helped the British currency. Tomorrow the Bank of England is on the calendar.
Adventurous Traders Needed for Pound
For traders with a sense of adventure and speculative courage, the Pound may be the most interesting trade on the board. The Pound rampaged higher on Tuesday as inflation data beat expectations handily.
As of this morning, the Pound is trading above the 1.33 level against the U.S Dollar and traders should expect further tests of its value as the day progresses.
Bank of England in the Cards
The Bank of England will issue their Monetary Policy Summary tomorrow. And while no one believes the Bank of England will increase its interest rate Thursday, traders’ perceptions will be confronted.
If the U.K central bank admits it will have to consider raising its interest rate early next year, it could add to Pound speculation. The British currency is testing highs not seen since July of 2016.
Pound Surviving all Battles
Even as Brexit concerns shadow the U.K, the Pound has fought its way through various battles and continues to emerge stronger. Resistance appears to be around 1.34 for the Pound and support is likely around 1.32. Risk management is urged for those considering trades of the British currency.
In the short term, we believe the Pound may be negative. Mid-term and Long-term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Midday Forex Snapshot – September 13, 2017
- Wednesday Support and Resistance Levels – September 13, 2017
- Pound Rockets Up as Inflation Ignites
- Will U.S. Inflation Prove Stronger Than Expected?
- Soft Earnings Data Weighed on Sterling
- Global Equities Higher as Speculation Builds, Pound Hits one-year High