GBPNZD: Constitutional crisis leads Pound into new lows ?
Good morning Traders and welcome back to my page on this NY session!
The Great British Pound is currently trading at 1.91400 against the New Zealand Dollar during today's NY session - and overall 70 pips fall since my last post.
\u2028Looking at the monthly timeframe on this start of September we can see that we have closed the month of August with a bullish engulfing candlestick however it didn’t quite reach our Monthly resistance target of 1.95000 to date.
Taking a look at the weekly timeframe , we have had a candlestick that represents well the consolidation we’ve had in the past week, this pair was specifically consolidating between 1.91600 and 1.94000.
When looking at the daily I cannot help to notice multiple rejections of this 1.94000 which was rejected also previously in June before we had a big sell off.
For this pair now I am just waiting for a closure of the daily candlestick. If we get a nice rejection of our 1.90800 weekly resistance I will remain bullish and take the pair to 1.95000, however if we break with the body engulfing this level I will first take GBPNZD to our 1.90000 monthly resistance and then lower all the way down to possibly 1.85000
Fundamentally, Boris Johnson has been able to suspend parliament from mid-September to October 14th which is a time for MPs to rebel in order to attempt to block a no-deal Brexit. Reports this morning have noted that MPs are looking to pass legislation that will force the PM to seek an extension from the EU provided a deal is not reached between the EU and UK before October 31st. However, with Boris Johnson threatening to deselect Conservative rebels, which in turn could see the PM with a minority government, expectations for a snap election is on the rise. (source: www.dailyfx.com/fore...-No-Deal-Brexit.html). In other words things aren’t looking very good constitutionally so we will play this pair technically and keep on the lookout for any major GBP news.
As always thank you for taking the time to visit my page and reading my outlook, if you would like more updates as well as an opportunity to network then feel free to join my FREE telegram chat where I am to post daily: t.me/joinchat/JJgGOE5NrRpipEB6rgInrQ
Monthly - bullish
\u2028Weekly - Consolidation
Daily - Awaiting…
The Great British Pound is currently trading at 1.91400 against the New Zealand Dollar during today's NY session - and overall 70 pips fall since my last post.
\u2028Looking at the monthly timeframe on this start of September we can see that we have closed the month of August with a bullish engulfing candlestick however it didn’t quite reach our Monthly resistance target of 1.95000 to date.
Taking a look at the weekly timeframe , we have had a candlestick that represents well the consolidation we’ve had in the past week, this pair was specifically consolidating between 1.91600 and 1.94000.
When looking at the daily I cannot help to notice multiple rejections of this 1.94000 which was rejected also previously in June before we had a big sell off.
For this pair now I am just waiting for a closure of the daily candlestick. If we get a nice rejection of our 1.90800 weekly resistance I will remain bullish and take the pair to 1.95000, however if we break with the body engulfing this level I will first take GBPNZD to our 1.90000 monthly resistance and then lower all the way down to possibly 1.85000
Fundamentally, Boris Johnson has been able to suspend parliament from mid-September to October 14th which is a time for MPs to rebel in order to attempt to block a no-deal Brexit. Reports this morning have noted that MPs are looking to pass legislation that will force the PM to seek an extension from the EU provided a deal is not reached between the EU and UK before October 31st. However, with Boris Johnson threatening to deselect Conservative rebels, which in turn could see the PM with a minority government, expectations for a snap election is on the rise. (source: www.dailyfx.com/fore...-No-Deal-Brexit.html). In other words things aren’t looking very good constitutionally so we will play this pair technically and keep on the lookout for any major GBP news.
As always thank you for taking the time to visit my page and reading my outlook, if you would like more updates as well as an opportunity to network then feel free to join my FREE telegram chat where I am to post daily: t.me/joinchat/JJgGOE5NrRpipEB6rgInrQ
Monthly - bullish
\u2028Weekly - Consolidation
Daily - Awaiting…