[Video] GBP/NZD: A Multi-Week Top Could Be In
Matt Simpson October 4, 2019 6:25 AM
With an average multi-week swing of around 1,900 pips and a potential top in place, we’re looking for bears to take back control.
GBP/NZD has essentially oscillated in a wide, sideways range since last October and price action has provided well defined swings. And they’re not small swings either, coming in at an average of around 1900 pips.
We think the top is in and now waiting for bearish momentum to extend to its downside. The New Zealand dollar has traded broadly higher these past three sessions and the British pound remains under pressure from the usual Brexit shenanigans. Under the current environment, it could well send GBP/NZD markedly lower.
Next week sees Mark Carney speak on Tuesday, and a slew of data including industrial and manufacturing production, along with trade balance and monthly GDP. For New Zealand data is mostly quiet until Thursday when their Business PMI and electronic card retail sales is released.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.