GBP/NZD: New lows to be reached for the Pound ?
Good morning Traders and welcome back to my page at the wake of this London session!
The Great British Pound is currently trading at 1.86270 against the New Zealand Dollar during today's London session.
Taking a look at the monthly timegrame we can note a rather bearish engulfing candlestick that managed to break the Weekly resistance of 1.87000 level as well as throwing a major wick to the downside rejecting the next weekly support level at around 1.83000. On the weekly timeframe, we have had a hammer printed right on the weekly support of 1.83000 which created bullish pressure to our next level around 1.87000. Following through to our daily timeframe we can see price is struggling to break through our resistance of 1.87000 with a clear rejection of our daily trendline which it is touching for the third time.
Fundamentally, we know that the Pound is currently under pressure regarding Brexit deals. Besides this we have New Zealand news later on tonight regarding Q2's employment change which is predicted to come out as positive at 0.4% compared to -0.2% on our previous data release. If the prediction follows suit we can expect a bullish NZ dollar which will in turn pressure GBPNZD to new lows as Pound loses strength and NZ dollar gains it.
I am currently waiting for the closure of our Daily candlestick to take action on this pair. If it does close with a rejection of our 1.87000 I will take this pair further down to our next support around 1.83000, a change of bias for me would be a body closure above this level as well as a break of our daily trendline which then I would look to take it further to the upside to our next Monthly resistance around 1.9000 although this would need some re-evaluation.
The Great British Pound is currently trading at 1.86270 against the New Zealand Dollar during today's London session.
Taking a look at the monthly timegrame we can note a rather bearish engulfing candlestick that managed to break the Weekly resistance of 1.87000 level as well as throwing a major wick to the downside rejecting the next weekly support level at around 1.83000. On the weekly timeframe, we have had a hammer printed right on the weekly support of 1.83000 which created bullish pressure to our next level around 1.87000. Following through to our daily timeframe we can see price is struggling to break through our resistance of 1.87000 with a clear rejection of our daily trendline which it is touching for the third time.
Fundamentally, we know that the Pound is currently under pressure regarding Brexit deals. Besides this we have New Zealand news later on tonight regarding Q2's employment change which is predicted to come out as positive at 0.4% compared to -0.2% on our previous data release. If the prediction follows suit we can expect a bullish NZ dollar which will in turn pressure GBPNZD to new lows as Pound loses strength and NZ dollar gains it.
I am currently waiting for the closure of our Daily candlestick to take action on this pair. If it does close with a rejection of our 1.87000 I will take this pair further down to our next support around 1.83000, a change of bias for me would be a body closure above this level as well as a break of our daily trendline which then I would look to take it further to the upside to our next Monthly resistance around 1.9000 although this would need some re-evaluation.
The Great British Pound is currently trading at 1.88800 against the New Zealand Dollar during today's London session.
I am currently waiting for the closure of our Daily candlestick to take a stance on this pair. It has broken above our descending trendline with the decison from the RBNZ to cut interest rates by 50 base point to 1% from 1.50%, this came as a shock since they were expected to but only by 1.25%.Also, no current updates on Brexit so GBP is taking advantage of this to gain strength although I hold my bias that in the long term GBPNZD will fall.
Most likely I see this pair consolidating between the monthly resistance 1.90000 and weekly resistance of 1.87000.
As always I continue to look closely at this pair aswell as any fundamentals for sudden spikes.