Long GBPUSD; Short NZDUSD; Pending EURUSD
The GBP/USD has extended yesterday’s gains ahead of the widely anticipated U.S NFP report. Indeed, I have been long the pair since 1.50624 on the back of several technical developments. For example, market participants witnessed price action slip back above the falling trend line (1/20, 4/26, 6/23). Additionally, the pair broke above psychological resistance at 1.50 and the 100 day SMA, while crossing over above the 100-day SMA. It is also worth noting that the 20 day SMA crossed above the 50 day SMA, signaling for further upside potential. We will maintain our long position as price action remains confined by the short term rising trend which has held since June 6th. I will look to move up my stop from 1.4705 to 1.4850. With regards to the NZDUSD, the pair looks to have extended yesterday’s advance but the exchange rate has stalled at the 50 day SMA. Indeed, my overall bias is to the downside as we have entered a short position at 0.7000. Going forward, I will maintain my trade and lower my stop to break even. Look to target 0.6827, with a break below exposing 0.6747. Another pair to keep an eye out for is the EURUSD. As expected the pair continues its northern journey on the back of a much needed correction. Keep a close eye on further developments as the pair will likely return to recent lows in the medium term.
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