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GBPNZD hits T1 & T2 Before major GBP rally

Market Analysis

GBPNZD, H1

The Fundamental shift saw Sterling as the star performer overnight, with markets responding to a story in the Telegraph newspaper reporting that the UK and the EU have agreed on a financial divorcing settlement, which could be up to GBP 55 bln, according to other sources. Despite a government source saying that “there is, as yet, no settlement” and “negotiations are ongoing,” and despite the fact that the Irish border remains a sticking point with Dublin intransigent on its view that there can be no hard customs border between the north and the south, the pound rallied. Cable clocked a two-month high at 1.3430, GBPJPY forayed in to two-week high terrain while EURGBP logged an eight-day low.

The rally in sterling came after yesterdays’s short intraday trade on the GBPNZD hit both target 1, 1.9150 and target 2 1.9085 from an entry of 1.9240 earlier in the morning. The position was discussed during our weekly LIVE ANALYSIS webinar yesterday and had a net gain of +155 pips.

GBPJPY has broke key technical resistance areas on all time frames.  Currently north of 149.00 the DAILY candle has breached and broke the key 20 day moving average and looks to have next resistance at 150.00, 151.50 (November high) and 152.80  (September high). Support resides at 147.30 (lower Bollinger band, October low)  and 146.10 (200 day moving average).  H4 also north of the 200 period moving average at 148.80, the recent fractal high and psychological 149.00. Resistance is 150.00-30. H1 support is 148.80-149.00 zone and resistance 149.50-65 and again the 150.00 round number.

 

 

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Stuart Cowell

Senior Market Analyst

HotForex

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