Looking at the Wednesday session, without a doubt there are only two economic announcements that we are going to follow: the Bank of England’s Monetary Policy Meeting Minutes, and the Federal Reserve’s Interest Rate Decision, and of course the accompanying statement. The statement actually is probably what can move the market out of America, just as the minutes will move everything in the United Kingdom.
The FTSE looks like it’s ready to go higher eventually, but we need to get above the 6850 level, or at least find some type of supportive candle in the near term to start buying. We have no interest whatsoever in buying puts in the FTSE 100 so it’s all about buying calls at this point in time as the uptrend should continue towards the 7000 handle.
The GBP/USD pair broke down again during the session on Tuesday, but we remain consolidative. Eventually though, we should make a fresh, new low, and as a result we would be buyers of puts in that region. On the other hand, if we break to the upside and find some type of resistance above, we would be buyers of puts in that region also. There is no interest whatsoever in buying calls in the British pound at this moment in time.
GBP/USD
The S&P 500 drifted a little bit lower during the session on Tuesday, but remains consolidative. With that we are looking for supportive candles below in order to start buying again as the 2080 level above leads us to much higher levels. 2040 below should be the “floor” in the market presently