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The comdolls left the other major currencies eating dust today as commodity prices rocketed.

We don’t have a lot of top-tier reports coming up so you can bet pips that traders will be watching the Brexit negotiations until the end of the week.

Before I show you an opportunity I’ve spotted on GBP/NZD’s chart, take a look at the market themes that dominated the U.S. and Asian sessions:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Germany’s final CPI at 7:00 am GMT
  • BOE FPC’s statement and meeting minutes at 7:00 am GMT
  • BOE’s financial stability report at 7:00 am GMT
  • BOE Governor Bailey to hold a presser at 8:30 am GMT
  • Italy’s industrial production at 9:00 am GMT
  • EU’s Economic Summit ongoing

What to Watch: GBP/NZD

GBP/NZD 1-hour Forex Chart
GBP/NZD 1-hour Forex Chart

GBP/NZD is finding support at the 1.8750 minor psychological handle on the 1-hour time frame. And, with Stochastic poppin’ up an oversold signal, you can bet that more than a few pound bulls are paying attention.

It’s a bit harder to be a pound fan these days, though. U.K. PM Johnson recently hinted that there’s a “strong possibility” of a no-deal Brexit after the Sunday deadline has passed. It also doesn’t help that vaccine developments have propped commodity prices (and the comdolls) higher in the last few hours.

If London session traders choose to be optimistic about getting a deal before the end of the weekend, then we could see GBP/NZD revisit the 1.8875 zone that lines up with a 38.2% Fib retracement and a previous support area.

Meanwhile, more headlines about a “no-deal Brexit” and continued pound weakness could drag GBP/NZD all the way to the 1.8500 key inflection points on the higher time frames.

What do you think? Which way will GBP/NZD go today?