News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
GBPNZD: Pending Long on a Sell-Off

GBPNZD: Pending Long on a Sell-Off

2018-10-15 13:38:00
Nick Cawley, Strategist
Share:

GBPNZD – Pending Long

  • Looking for a sub-GBPNZD 2.000 set-up.
  • New Zealand CPI and UK data and Brexit news may open the way.

The DailyFX Q4GBP Forecast is available to download.

A long Sterling position may seem a risky proposition ahead of EU/UK Brexit talks but it may also offer the short-term sell-off we are looking for to enter a position against a currently weak New Zealand dollar. Before we enter the position, we look for the pair to trade to have broken the short-term downtrend and to trade around 1.9870 compared to the current level of 2.0110. Below is a list of releases and events that may push GBPNZD down to our in-price.

Notable GBPNZD Events this Week (w/c October 15, 2018)

New Zealand CPI – Monday October 15.

UK Wages and Employment – Tuesday October 16.

UK CPI – Wednesday October 17.

EU Summit (Brexit) Wednesday/Thursday October 17/18.

UK Retail Sales – Thursday October 18.

The daily price chart shows the 10-day low at 1.9870, the breakout candle that took the pair to its recent high of 2.0480. It is also the same level as the 200-day moving average on the four-hour chart, which has acted as trend support since August 29. The pair tried to break this support on September 21-23 and October 2 but failed. On the short-term chart the pair are also nearing oversold territory.

GBPNZD Daily Price Chart (March – October 15, 2018)

GBPNZD: Pending Long on a Sell-Off

GBPNZD Four-Hour Price Chart (August 14- October 15, 2018)

GBPNZD: Pending Long on a Sell-Off

DailyFX analyst Paul Robinson’s video on how to become a better, more consistent trader is a must listen for market participants seeking an edge. As Paul notes early in his piece, Markets are too dynamic, full of too much uncertainty, to try and navigate them without a framework in place. Trading plans are imperative for creating consistent results'.Becoming a Better Trader – How to Create a Trading Plan.

Traders may also be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES