An online currency trading uptrend appears to be forming on GBPNZD, as a rising trend line can be drawn to connect the recent lows on the 1-hour time frame. However, stochastic has just reached the overbought area and is heading lower after price tested the 2.0100 major psychological resistance.
This could lead to a test of the rising online currency trading trend line, which lines up with the 38.2% Fibonacci retracement level and the 2.0000 major psychological handle. This acted as resistance in the past and may hold as support for now.
A bounce from this online currency trading area could push GBPNZD back to its previous highs at 2.0100 or higher if buying momentum picks up. Going long at 2.0000 with a stop below the Fibonacci retracement levels and trend line and aiming for new highs around 2.0200 could yield a high return-on-risk for a short-term trade. Aiming higher while keeping a trailing stop could improve profitability while minimizing exposure.
Online Currency Trading Forecast
Data from the UK has been strong recently, supporting a bullish bias for the pound, as the BOE has also showed a couple of policymakers voting to hike rates. However, the Scottish referendum is still a huge event risk for this setup, as Scotland’s independence might lead to political and economic uncertainty for the United Kingdom.
Meanwhile, the economic slowdown in China appears to be weighing on online currency trading sentiment, particularly for risk appetite and the higher-yielding currencies. This could lead to Kiwi weakness, especially since the RBNZ is not expected to announce policy changes anytime soon.
UK retail sales is also up for release today and this might lead to volatility for this pair, with strong data likely to push prices higher and beyond the 2.0100 previous highs. On the other hand, bleak data could cast doubts on the BOE’s tightening time frame and might lead to an online currency trading selloff.
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