Cable Breaks The Upward Channel Following BOE Inflation Report; More Weakness In View

By: Gregor Horvat | Wed, Nov 12, 2014
Print Email

USD is mixed across the board but we see in a strong shape against the pound after BoE forecasts that the inflation rate will fall below 1% within 6 months, and rise toward the 2% target by the end of the 3-year forecast period. The bank also cut the GDP forecast by 0.2% for both 2015 and 2016 (to 2.9% and 2.6%, respectively), and cited a weaker Europe, which was the reason for weaker GBPUSD as well as lower prices on FTSE100. Technically speaking we see cable breaking beneath the channel support line that confirms end of a three wave rally, therefore weakness is expected to resume towards the lows after any three wave rally. 1.5939 is now invalidation level; expect lower prices as long this high is in.

GBPUSD 1h Elliott Wave Analysis

GBPUSD 1-Hour Elliott Wave Analysis Chart

 


Subscribe Our Newsletter If you already haven't >> http://goo.gl/8QVevl

 


 

Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

Copyright © 2013-2017 Gregor Horvat

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com