GBPNZD Bear Flag on Watch
Price action in GBPNZD is looking interesting here. The pair has been moving in a well-defined, corrective bull channel over the last month or so. Given the heavy decline leading into this current corrective period, an eventual downside break of the channel and a continuation of the prior bearish trend, is the preferred move. With this in mind, bears can look for a break of the 1.9164 support and channel low, targeting a run down to 1.8875 initially and 1.8633 thereafter.
Keep An Eye On
There are plenty of downside risks for GBP this week. The BOE meeting and local elections in the UK today hold the potential to act as a catalyst for a fresh direction move in GBP. If the predicted heavy losses for the Tories come to fruition, this will likely increase the sense of political uncertainty in the UK, weighing on GBP. Meanwhile, GBP looks vulnerable to downside from today’s BOE meeting from two perspective. If the BOE sticks to a smaller .25% hike, instead of going for a larger .5% hike, this will no doubt disappoint bulls. However, if the bank does go for a larger hike, this will throw growth concerns into fresh focus. A very tricky situation for the BOE to manage indeed.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.