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The U.K. is set to print a potentially downbeat mid-tier report while this pair closes in on a test of resistance.

Apart from that, there’s not much in the way of top-tier catalysts in the upcoming London session, so inflection points might just hold.

But first, here’s a quick glance at how the majors are performing:

Currency Snapshot

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

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Spanish unemployment rate at 8:00 am GMT
  • U.K. CBI realized sales index at 11:00 am GMT

What to Watch: GBP/NZD

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

This pair is hanging out inside a descending triangle visible on the 1-hour chart and may be gearing up for a test of resistance.

If the top of the triangle is able to keep gains in check, GBP/NZD could slide back to the bottom at the 2.0500 major psychological support.

On the other hand, a break higher could set off a climb that’s around the same height as the chart formation.

There’s not much in terms of top-tier data from the U.K. or New Zealand today, though, so consolidation could be the name of the game.

Keep in mind that sterling is coming off a dismal performance in the previous week, so there’s a chance that pound bears could be ready to return soon.

Meanwhile, New Zealand is already starting to loosen lockdown restrictions, which could mean a pickup in economic activity. Just stay on the lookout for major swings in sentiment as the U.S. earnings season is upon us.

A straddle setup could be a good option if you’re undecided which direction to play. Also, make sure you check the average GBP/NZD volatility when setting stops and entries!