Revisiting GBP/NZD once again as I haven’t yet pulled the trigger, but with another technical setup ahead of New Zealand catalysts, it just might be time to make a move.
Upside Breakout on GBP/NZD?
At the beginning of November, I was checking out GBP/NZD as it was pulling back and I thought that a breakout above the falling ‘highs’ pattern was imminent. Well, the pair has been stuck in a range since and the question now is, “will the consolidation finally break?”
We’ve got potential catalysts this week from New Zealand (NZ retail sales, RBNZ Financial Stability report, Business confidence), so the resistance may be set to break, especially if the recent bullish sentiment on Sterling continues to hold.
No orders for now as I’d like to see which way the pair breaks, and if it does break to the upside on some bearish New Zealand data / RBNZ commentary, then I’ll be sure to put up a fresh update with a plan to try to catch the next leg higher. If we get a bullish round of NZ updates AND a negative turn on Brexit sentiment, then I will be open to short position as that would likely draw in momentum sellers and/or profit taking off of the recent rallies.
What do you guys think? Are you watching GBP/NZD for a potential breakout ahead? Let me know in the comments section below!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.