Note: The S/R levels (i.e. likely bank trader order levels) as depicted in their respective timeframes in this and prior articles have not changed, and will probably NEVER change regardless what happens in financial markets. What follows is my own world view, developed from an institutional trading career dating back to 1995.
Day 1 of the Jackson Hole Symposium starts today.
The event is attended by central bankers, finance ministry officials, scholars, and financial market players from around the globe.
Considering everything that’s been going on PLUS all the crazy stuff Trump has been saying ALL WEEK to distract the world from his problems (not JUST about buying Greenland), it’s likely traders are desperate for some clarity to come out of this weekend.
In the meantime, Barclays Bank predicts that the FOMC will likely push thru deeper rate cuts BECAUSE of the economic fallout from Brexit. A no-deal Brexit (which is very likely) is just going to put a further drag on economic growth around the world.
The pound surged to the top of a prior H4 range around 1.2270 after German Chancellor Angela Merkel hints to a possible “solution” to the the Irish backstop, an issue that is at the heart of the Brexit crisis.
But we’re not counting on the “Boris Bounce” to last.
What this space!
The only useful charts going into the weekend are the GBPUSD and XAUUSD.