Opportunity to Sell GBPNZD's Dead Cat Bounce
The GBPNZD pair appears to be forming a new Dead Cat Bounce pattern, which typically signifies likely bearish reversals.
An opportunity to sell around 1.94500 (previous swing high) may emerge, provided that the price rebounds from the 50-day MA (in green) and 100-day MA (in blue) for a second time. It did the same during the establishment of the first Dead Cat Bounce.
If the price breaks down below the support at 1.92000, then the subsequent dropdown will likely test the psychologically significant support level at 1.90000.
New Zealand's CPI numbers and UK's unemployment data, both scheduled for publication on Tuesday, are likely to cause heightened volatility. This could serve as the catalyst for the expected bearish reversal.
An opportunity to sell around 1.94500 (previous swing high) may emerge, provided that the price rebounds from the 50-day MA (in green) and 100-day MA (in blue) for a second time. It did the same during the establishment of the first Dead Cat Bounce.
If the price breaks down below the support at 1.92000, then the subsequent dropdown will likely test the psychologically significant support level at 1.90000.
New Zealand's CPI numbers and UK's unemployment data, both scheduled for publication on Tuesday, are likely to cause heightened volatility. This could serve as the catalyst for the expected bearish reversal.