Some of the big market makers started to speak about “overvalued” NZD.
The lack of progress in Brexit negotiations was a drag for the Sterling mid-week, but the news was quickly followed by headlines indicating that the EU could offer the UK a 2-year transitional deal, bringing some relief to speculators. The EU27 group will meet this upcoming day to discuss future relationships with the UK, further spooking the ghost of a “hard Brexit.
Technically speaking; on the weekly chart, GBPNZD is keeping its uptrend position. The pair has tested EMA 100 resistance.
On the daily chart, we can see higher dips. GBPNZD is above EMA 50,100 and 200. 1.8900 is a critical resistance for the pair.
The pair ended the week at 1.84950. In the midterm, we predict the price will 1.9200 – 1.9400. We are looking for a perfect level for LONG entry with the target of 1.92 -1.94 regions.
I will enter a LONG trade with a few H1 closings above 1.87400. Targets will be 1.89, 1.90900 and 1.92
There is another scenario. GBPNZD can break below 1.84000. In this case, I plan to enter a short trade targeting 1.83200 and 1.82000 levels. And enter LONG again from the dips.
I hope to generate, minimum 700-800 pips profit from this trade. We will keep you updated.