By Kenny Simon
The focus yesterday was on the BoE and how aggressively it would have responded to the economic risks posed by Brexit, with baseline expectations for a 25-basis rate cut and predictions of QE in the pipeline at future meetings. How it all went totally opposite of what was expected as we are looking at a min of 100 pip gained and would it just be corrections today with more room to the upside?
Based on the initial analysis following the Cup & Handle pattern, it looked like a successful pattern as it broke out the 1.3340 area (mouth of the cup) and as of now, is expected for prices to return to that area before making further progress upwards. It’s expected, based on this pattern for a further min of 200 pips gain awaiting traders. Happy Pipping !