The GBP/NZD has reached a consolidation period on the D1 timeframe. With FOMC at 2pm today, we will see a spike to the up or downside, giving us a clear understanding of where the market is headed.
We can prepare for the news release by setting limit orders, or simply wait until the day is over to see where the candle body closes.
What Others Are Predicting
– GBP the strongest currency at the moment against major other currency.
– Closes target to reach on weekly TF: 2.07300 and 2.13000
After rising 2000 pips and reaching 2.05 resistance, the pair corrected and we have a false break of 2.0 psychological support at the beginning of the month
The pair recovered above this support quickly and now is trading at 2.0140
We believe that a next leg up is underway and 2.05 figure will be challenged again soon
Strategy:
Look to buy lows
SL under 2.0
TP @ 2.05
My Thoughts!
- Price is in a consolidation period.
- We received a long alert on the harmonic pattern scanner, which has a 97% win rate on the currency pair.
- The safest entry would be to wait until the release of FOMC, however you may miss out on a better entry.
Setting up a long and short limit order would help with this. Just above previous resistance of 2.01814 and below previous support of 1.99579.
We are currently in a short position with limit orders also set.
Our targets for the long position are 2.03178 – 2.05385.
Our targets for the short position are 1.98127 – 1.95079.
Cheers to another successful week!