NZDGBP has been on the front foot over the past three-days, bringing price back up towards the prior intraday swing-high of 0.48649. This provides a potential shorting opportunity for those seeking a continuation of the bearish trend that has dominated the past six-months. With that in mind, the rally into a combination of trendline and Bollinger band resistance signals a potential overextension that could soon roll over once again. From an economic perspective, the BoE remains the major outlier that must maintain a hard line on their monetary policy in the face of particularly elevated inflation. Keep an eye out for the RBA decision overnight given the tight correlation between NZD and AUD. A surprise hike from the RBA would likely lift NZD. Nonetheless, beyond that RBA meeting there are few notable economic releases that are likely to significantly move the dial for this pair.
Short positions are favoured, with a stop above the latest swing-high of 0.48649. This trade carries a 2.5/1 risk-to-reward ratio.
Short positions are favoured, with a stop above the latest swing-high of 0.48649. This trade carries a 2.5/1 risk-to-reward ratio.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.