#GBPJPY could be one to watch this week as we have the volatility from the Bank of England rate announcement. Could this offer us some swing trading opportunities?
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GBPJPY could be one to watch coming into this week as the Bank of England announce rates. They are expected to hold rates at 0.1% but they have talked in a previous meeting of being ready and prepared to hike rates if they need to. This type of language is hawkish and we could see the price of the GBP rally if they hint at a hike early next year.
The Japanese Yen is still the weakest currency currently, and seasonally November is the worst performing currency which could suggest the recent sell off in JPY has not ended.
The weekly chart is showing signs of a pullback phase forming however the BoE announcement could turn the tide quickly. If the market is in a retracement phase we could see it move back to the recent swing highs where the trend could continue.
Swing Trading Time Frame
The 4hr time frame currently is in a downward trend with the price forming lower lows and lower highs. If the price breaks through the key support zone and consolidation pattern we could see a short idea from the lows to the key weekly support. Alternatively, if the price finds support here we could see the market rally and break the highs of the consolidation pattern.
Did you see our recent week ahead analysis? watch it here.
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