GBPNZD Responds to Key Support- Scalps Target Resistance at 2.0550
- GBPJPY recovery in focus
- Near-term bias at risk sub-2.0550
- Key Event Risk on Tap
Chart Created Using FXCM Marketscope 2.0
- GBPNZD rebounds off key support 2.0287 – 2.0322 (broader bullish invalidation)
- Resistance 2.0624/26 (Sunday Gap) & February TL resistance
- Momentum reversal ahead of 50- constructive
- RSI resistance trigger pending- breach would validate long-bias
- Event Risk Ahead: UK Retail Sales on Friday
Notes: A momentum reversal / European opening range break yesterday shifted the scalp bias back to the topside after tagging key support earlier in the week. The rebound has encountered resistance at a Fibonacci confluence at 2.0549-53 with a breach above needed to keep our bullish scalp bias in play. Such a scenario targets more significant resistance at 2.0626/39 and we will reserve this objective as our near-term bearish invalidation level (possible short entry). Subsequent resistance targets are eyed at 2.0699 & 2.0786-2.0802.
We’ll reserve today’s low as our near-term bullish invalidation level with a break below shifting the focus back into key long-term support just ahead of 2.03. A quarter of the daily ATR yields profit targets of 60-65 pips per scalp. Caution is warranted heading into UK event risk tomorrow morning with retail sales data likely to fuel added volatility in Sterling crosses. We’ll also be looking for a possible play in the GBPJPY setup noted yesterday.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
Other Setups in Play:
- GBPJPY Scalps Target Key Resistance Range- Longs at Risk Sub 184
- AUDCAD Threatens Weekly Opening Range- Longs Scalps Favored Above 9750
- Weekly Setups Target Key Opening Ranges in USD, GBP, Gold & Silver
- Scalping GBPUSD Correction- Long Scalps in Play Ahead of BoE, NFP
---Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
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