The kiwi has been range bound for the best part of a year now and in recent days has stopped just shy of descending resistance. Furthermore we saw the overbought signal from the RSI last week coincide with price action rejecting off this resistance.
After a considerable drop based on the General Election result I feel now is a good time to get in cheap on the GBP against a falling USD. I have placed my stop just below the current 200sma (which i expect to rise over the next few weeks) and set my TP below yesterday's open.
Fundamentals - Bearish bias with the GBP due to Tory lead dwindling post manifesto, rising inflation, aggressive EU Brexit stance and yesterday's terrorist attack.
Technicals - EURGBP closed above 200sma yesterday and has retraced today only slightly. Now bullish bias due to sitting above 200sma, 50ema and 20ema.
Buy @ market
SL @ 0.85897 (above 200sma)
Firstly price moved above 200sma on 18/4/17 for the first time since the Brexit referendum. Price action has consolidated above the 1.27648 level which had proven to be a difficult resistance level to breach post Brexit, this level has since turned to a clear support level over the last week. Initial TP placed just shy of the 1.30000 round number.