Trading plan for 01/11/2018

On Thursday, the 1st of November, the event of the day is the Bank of England interest rate decision, but the global investors should keep an eye on the other data, like CPI data from Switzerland, PMI Manufacturing data from the UK, Unemployment Claims, Continuing Claims and ISM Manufacturing data from the US. There is a speech from BOE Governor Mark Carney scheduled after the BoE decision is made.

EUR/GBP analysis for 01/11/2018:

The market participants expect the BoE to leave the interest rates unchanged at the level of 0.75%, together with the Asset Purchase Facility at 435bln GBP. The other interesting data will be BoE Inflation Letter that is issued every time when inflation moves away from the target by more than 1 percentage point in either direction. The Official Bank Rate Votes is another interesting piece of data worth to keep an eye on. This indicator shows how the BoE's Monetary Policy Committee voted and the global investors can see who is a hawk and who is a dove among the MPC Committee.

Let's now take a look at the EUR/GBP technical picture at the H4 time frame before the BoE decision is made. The market has broken out of the descending channel and moved up towards the 61% Fibo retracement of the previous swing down, but did not hit the level. The candlestick formation called Bearish Engulfing pattern clearly shows the bears have control over the market and are trying to push the prices back towards the level of 0.8825. The momentum remains negative and points to the downside in slightly overbought market conditions. The next technical support is seen at the level of 0.8797 and the nearest technical resistance is seen at the level of 0.8917.

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The material has been provided by InstaForex Company - www.instaforex.com