Dear All, After a significant drop in British Pound value I have just seen a few signals that shows possibly GBP will be appreciating. Moreover, I have been monitoring NZD and I believe this currency can potentially face a significant depreciation.
Stronger GBP plus weaker NZD, lead us to post this trade, GBPNZD Long.
I would like to talk about British Pound first.
1) See FTSE 100, It is just reached into a significant resistance and I would expect a bounce. This means cheaper Pound.
2) This is weighted average Pound. It has reached to the lower parallel of the rising channel. I would expect a bounce here. This means Pound appreciation.
3) This is UK 10 Yrs Gilt. Opposite correlation with Pound expected. This one has also reached to an overhead resistance.
4) This is UK 10Yrs Yield. Direct relationship expected. This one also reached to a rising trend line. A bounce expected.
5) UK Bond and self-explanatory. A bounce expected. Also has opposite correlation with Pound.
6) I had 5 satisfactory charts on GBP but his one does not look so good. It is Pound futures. I would expect this one to at least visit the rising channel as a resistance. From there we might be able to see uptrend continuation because of other 5 charts above.
Now let’s look at NZD. I expect to see cheaper NZD because of the following reasons.
1) This is New Zealand dollar index and has opposite relationship with NZD currency. It has broken the resistance and currently sitting at that as a support.
2) On the weighted average NZD I have observed a false breakout of the flag and falling channel followed by a break on the other side. Now the price is sitting below the lower parallel of the flag (both red and black) and now I expect it heading lower.
3) NZD futures is the best one. I like this one.
4) NZD yields also heading lower which is what we would like to see.
If you liked this analysis please LIKE! Thank you. KHAN
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150 Pips in profit. A lot more to come
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NZD my see a significant move lower soon. See the pink Flag on Weighted Average chart bellow
If you ever wondered whether this flag will be broken to the down side, I would recommend to see the following which is NZD futures and is exactly the same as above but with broken Flag to the downside. We might see the same thing
Also see how the NZD index broken the resistance and is not carrying up on rising. Opposite relation is expected.
For Yields I think you agree with me. It is heading to the red circle. Right?
Same with Bonds. It is heading up and opposite relation is expected.
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I have been waiting for this break DAYS ago. Now relax :)
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Lovely day. Right? Apart from our Euro crosses all positions are in profit. Give some time to Euro crosses and they will drop.
I was just thinking that a lot of candle stick traders gone short below this candle :)
@im97946, Not really. Just look for a deep pullback and get in
CBMotivation
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Loving the analysis Khan, I’ve not seen a signal on the GBPNZD on any timeframe, so I won’t be entering a trade just yet, definitely one to keep my eye on. Cable / Aussie recently broke the support line and we’re not at a place of major resistance, but it’s still a sell. There is a nice pull back on NZD/AUD, indicating a potential buy, and strength on the NZD.
So I would assume if Cable still can’t bounce back against the Aussie, then the Kiwi dollar may have some strength in the early period making the, short term at least, a little tougher. If we get some strong reports on the Pound, everything may change rapidly.
khansalarehsan
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@CBMotivation, May thanks for your great comment. I really appreciate and thanks for sharing your thoughts.