Long setup for GBPNZD, potentially fueled by technicals and incoming economic data and news.
GN has been steadily declining from recent mark up and currently trading on a daily/weekly zone and seems to bounce of a potential local supply zone.
On the other hand the rally was pretty strong and was able to take out the previous high from may 2020, so there could be a case made for price being overbought and hit potential resistance. However, because price managed to take out that high with a pretty significant rally and we have some big news coming for GBP, which have strong sentiment toward higher CPI and a rate hike from the BoE. Therefor I see the potential for price to potentially double top locally or even break and look up 2.20 range, before any serious correction comes in.
If price breaks below 2.09, I would consider this setup invalid.
GN has been steadily declining from recent mark up and currently trading on a daily/weekly zone and seems to bounce of a potential local supply zone.
On the other hand the rally was pretty strong and was able to take out the previous high from may 2020, so there could be a case made for price being overbought and hit potential resistance. However, because price managed to take out that high with a pretty significant rally and we have some big news coming for GBP, which have strong sentiment toward higher CPI and a rate hike from the BoE. Therefor I see the potential for price to potentially double top locally or even break and look up 2.20 range, before any serious correction comes in.
Comment:
Well, that call was maybe a little too early, but some interesting development is going on. Same concept applies. Breakout on the local highs and channel.
Order cancelled:
Well, price went pretty much south, so setup invalid.
Comment:
Might become interesting if price can breakout from here.
It double bottomed on potential demand. Has made some HH's/HL's
It double bottomed on potential demand. Has made some HH's/HL's
Comment:
Looks like more south toward the news.
Price saw a slight sell off, but seems to recover. Japan on bank holiday, so that will likely eat on the volume. While in recovery mode, price seems to break away from the POC range. If it can also break some local highs and reach the upper base of the downward channel. It might be interesting to see if price can break away from it and trade long to 2.11 range.