Trade Corner

GBP: Pound Sterling

by Macro D

In the Friday Chart Book of October 11th, I first presented my GBP short trading idea.

Here are my trades:

Short GBP/USD:

Take profit: 1.20 Stop Loss: 1.33

We entered on October 10th at 1.3080 and are now at 1.2617.

Short GBP/NOK:

Take profit: 10.50 Stop Loss 14.50

We entered on October 10th at 14.20, and now, we are at 13.9676.

Short GBP/INR:

Take profit:88,00 Stop Loss 113.00

We entered on October 10th at 109.89, and now, we are at 106.518.

Let’s start here. The Bank of England (BoE) cut its interest rate by 25 basis points to 4.75% in its November 2024 decision, marking the second rate cut after the start of the cycle of cuts in August. After the September break, and based on this cadence (every other month), we are heading for a break in the last month of the year. At the previous meeting, 8 of the 9 MPC members voted for a cut, exceeding expectations of 7 votes in favour of cuts. The decision was made based on one primary motivation: there has been a slowdown in price growth in the UK economy, and long-term inflationary pressures have continued to ease. One figure above all: September inflation fell to a more than three-year low of 1.7%.

Where do we go from here? Let’s explore