Forex Trading Long on GBP After BoE?. WTI and Brent Crude Oil Still Falling.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on USDCAD, WTI Crude Oil, Silver, XAGUSD, Gold, XAUUSD, EURGBP, and GBPUSD.

Yesterday, the Bank of England decided to hold their interest rate steady, with a close vote.

This gave GBP a boost, along with the fact that September UK inflation was slightly lower than expected.

From the technical standpoint, we see the stochastic oscillator overbought on every pair where GBP is the base currency so be careful.

However, if we look at other time frames, like GBPUSD, we see the opposite technical signals on the daily, 1-hour, and lower time frames.

On the 1-hour EURGBP chart, we see a clear downward trend channel or a falling wedge and an overbought stochastic oscillator.

Again, check other time frames to confirm.

We see both silver and gold consolidating in either symmetrical pennants or ascending triangles but, either way, we could see moves coming.

The technicals really aren’t helping us here but you may want to treat this as a range trading opportunity and use Bollinger Bands.

If you see a Bollinger Squeeze, like this one, expect a big move to follow.

We have been watching the Crude Oil market and we are still short WTI and Brent Crude and the technicals are backing us up.

Because of the falling price of oil, CAD is weaker against almost all other currencies.

The USDCAD long we spotted may be coming to an end with price action and technicals slowing down.

But watch for today’s Canadian Employment reports from Ottawa today.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.