Minutes ago we listened to BOE governor Mark Carney’s speech about the financial stability in the United Kingdom. He said that the financial stability associated with the outcomes or the results of Brexit and the consumer credit has far outpaced household income over last year, and those comments led the pound currency to decline with 20-30 pips against all major currencies and to rise back again.
Today we would discuss the GBP/NZD pair which has lost more than 1400 pips since May 22 after breaking the small channel at the top. In our last report we recommended selling the pair at 1.7960 and it achieved our targets at 1.7932 and 1.7465 for more than 490 pips.
The pair is trading now at 1.7430, close to the uptrend line which has 4 bottoms. We are waiting for another retest to buy the pair. The Stochastic indicator lines are crossed together at the level 35.
The Next Few Days
From this analysis of the daily chart we have to wait for a bullish candle at these levels or a little lower on the daily or H4 chart in order to buy the pair. We should keep our first target at 1.7765 and the second one at 1.8150, but if the prices break the trend line and settle down we have to sell the pair to the bottom 1.6830.
This week is overwhelmed with hot events like Carney’s speech tomorrow and the current account on Friday from the UK.
