The Classic QE trade - Sell GBP on rise, FTSE 100 sees upside potential - Hantec Markets

Richard Perry, Market Analyst at Hantec Markets, joined the Tip TV Finance Show, to offer the technical outlook on GBP/USD, GBP/JPY, and the FTSE 100, also joined by Mike Ingram, Strategist at BGC Partners, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.

Highlights:

“GBP/USD – monetary policy divergence still the main theme. BOE McCafferty (hawk) suggested prospects of further easing would add fuel to the fire.”

“Break down below 1.3060 was a key development. On the hourly charts, 1.3060-1.31 is a potential selling area. However, interim rally cannot be ruled out before further sell-off. A Pop would be selling opportunity.”

“GBP/JPY – Momentum indicators negatively configured across the board. Over 30% decline in one year already. Re-test of 128.30 certainly a possibility.”

“FTSE100 weekly – 6870-6900 was massive resistance in the 2013-2014 period. We hit that yesterday and came off..”

“A near term correction an opportunity to buy as the momentum remains very strong. Support at 6612. Inverse head and shoulder breakout could give us a test of 7K levels.”