Before the British general elections, we need to know where the Pound is going to in the next days if we want to hunt a good opportunity, which is why we would discuss the GBP/NZD currency pair today and analyze the pair's chart.
The GBP/NZD pair is trading down after breaking the short-term price channel to lose more than 650 pips after UK polls started suggesting that PM Theresa May might not be able to bolster her majority. The pair is now trading at 1.7960 below the trend line which started on May 19. Still, the GBP/NZD has a strong support level at 1.7932 and the bears' power in the market can break it in the next hours. The moving average is still trading above the prices, supporting the negative movement.
The Next Few Days
Based on this analysis of the daily chart we can sell the pair now at the current level 1.7960 and keep our first target at the support level 1.7932. If we notice a bullish price action candle we would close all positions, but if we don't see such a thing we can extend our sell order to 1.7465.
This week is abundant in hot events like the Parliamentary Elections in the United Kingdom as we mentioned; there is also the Manufacturing Production on Friday and Comey’s testimony on Thursday which may offer clues to how the probe into the Trump campaign’s contact with Russian officials and likely will impact the administration’s ability to push through its policy agenda.
