GBPNZD ONE TO WATCH
GBPNZD is a definite one to watch, if we take a look at the weekly chart there’s a clear uptrend happening starting from way back in October 2016 and ending in March 2020. A strong rejection in the weekly candlestick can be found here. This could be the result from the UK reacting slowly to the corona virus and going into lockdown. While New Zealand dealt with the pandemic much more seriously and went Straight into lockdown, thus slowing down the virus in their country and protecting their economy. The UK has been hit the hardest with Covid in Europe, with death tolls towering above our European neighbours. This with a prolonged lockdown stage, has hit the great British economy with full force. With future plans for pubs and restaurants to reopen in the upcoming 2 weeks along with the weekly chart coming a support line, could this be the pivot point and major support line we see the GBP come back to life?
On the opposing side of this however, with furlough finishing soon, we will not know the true amount of damage the economy has suffered until furlough ends and we see how businesses react. Reports of up to 25% of all current employees on furlough could be in high danger of losing their jobs. With businesses struggling, a weakened economy, a soaring unemployment rate, all this along with Brexit talks still not going in the right direction. There is too many negatives to risk a long position just yet especially against a currency who’s country has reacted well to to the pandemic. With all this, we could potentially see a huge break in trendline which started in late 2016.
What’s do you think about GBPNZD? let us know in comments if you are thinking about a short/long position.
GBPNZD is a definite one to watch, if we take a look at the weekly chart there’s a clear uptrend happening starting from way back in October 2016 and ending in March 2020. A strong rejection in the weekly candlestick can be found here. This could be the result from the UK reacting slowly to the corona virus and going into lockdown. While New Zealand dealt with the pandemic much more seriously and went Straight into lockdown, thus slowing down the virus in their country and protecting their economy. The UK has been hit the hardest with Covid in Europe, with death tolls towering above our European neighbours. This with a prolonged lockdown stage, has hit the great British economy with full force. With future plans for pubs and restaurants to reopen in the upcoming 2 weeks along with the weekly chart coming a support line, could this be the pivot point and major support line we see the GBP come back to life?
On the opposing side of this however, with furlough finishing soon, we will not know the true amount of damage the economy has suffered until furlough ends and we see how businesses react. Reports of up to 25% of all current employees on furlough could be in high danger of losing their jobs. With businesses struggling, a weakened economy, a soaring unemployment rate, all this along with Brexit talks still not going in the right direction. There is too many negatives to risk a long position just yet especially against a currency who’s country has reacted well to to the pandemic. With all this, we could potentially see a huge break in trendline which started in late 2016.
What’s do you think about GBPNZD? let us know in comments if you are thinking about a short/long position.