This week will be marked by monetary decisions of the central banks.
Today -15.12 – at 19:00 FED decision and 19:30 J. Powell press conference.
Tomorrow -16.12 – 8:30 SNB, 12:00 BoE and 12:45 ECB.

  • SNB – Swiss National Bank Thursday 8:30 GMT,
  • BoE – Bank of England Thursday, 12:00
  • ECB – European Central Bank Thursday 12:45

Undoubtedly, today’s Fed decision and tomorrow’s BoE will have the biggest impact on the markets.
The GBP/JPY currency pair I have analysed is admittedly a cross – meaning it does not include USD, but with Thursday’s BoE decision on future monetary policy looming it will be prone to high volatility.

british pound with japanese yen
GBPJPY Daily – price leaves the inside bar

Until today, the market did not expect much change, but after today’s inflation data, which reached a level not seen in 10 years – the bank’s plans may change and polmon tightening may become a reality.

Putting aside the fundamentals and analysing GBPJPY from the technical side, the situation on this pair seems to be set for growth.

On the daily chart (D1) the price broke out of the inside bar formation. The formation was formed on 4 December, when the next daily candle was not able to overcome the range of the candle from the previous day. Today we observe an upward breakout from this formation. The MACD is in an upward phase.

GBPJPY H4 – price breaks out of the symmetrical triangle upwards. The target may be the trend line

On the H4 chart, the situation seems to be even clearer. The price has overcome the resistance of the symmetrical triangle and may follow to the local trend line located about 70p higher. Here the MACD is also in an upward phase.

How it will be after today’s FED decision and tomorrow’s BoE decision is hard to predict but for today according to technical analysis GBPJPY is… bullish

The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE .
More current analysis on the group : Trade with Dargo

Thursday, 16th of December 07:00-09:00 GMT – live trading session here:

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