Good morning team,
After the wick down on the GBPUSD, I wanted to wait until post-FED announcement before positioning in the market.
Whilst the FED raised interest rates by 0.50%, they also stated that they were not looking at more aggressive rate hikes in the coming meetings. This has put a cap on the year-end target for interest rate hikes.
With this in mind, and inflation remaining high, it has created a bullish environment for GOLD. Especially considering the recent sell-off across metals. We see the recent decline as corrective and has possibly reached a bottom.
GOLD – 4 Hour Chart
Trade Setup: BUY market execution, current price 1886, stop loss 1860, take profit 1944.
Stop loss: 260 pips
Take profit: 580 pips