GBPNZD reversal idea
Updated
Fundaments of UK are looking good, with forecast inflation and interest rates both expected to rise over the next 12 months. These factors do influence a currency.
New Zealand fundamentals are forecast to remain fairly stagnate over the next 12 months. Obviously this could change.
Fundamentals will apply a upward pressure on this pair.
RSI has also formed a recent bullish divergence signal, and at an are of previous support, indicating that sellers are losing momentum in this pair.
Could this be a sign of institutions rebalancing their portfolios in anticipation of a pound appreciation.
I am bullish on this pair and would wait for a pullback to a fib level before entering long.
Exit when the upward trend seems to be losing momentum.
Potential risk to reward ratio is good.
New Zealand fundamentals are forecast to remain fairly stagnate over the next 12 months. Obviously this could change.
Fundamentals will apply a upward pressure on this pair.
RSI has also formed a recent bullish divergence signal, and at an are of previous support, indicating that sellers are losing momentum in this pair.
Could this be a sign of institutions rebalancing their portfolios in anticipation of a pound appreciation.
I am bullish on this pair and would wait for a pullback to a fib level before entering long.
Exit when the upward trend seems to be losing momentum.
Potential risk to reward ratio is good.
Note
EDIT: I meant to say that UK inflation is forecast to fall, not rise. A fall in inflation is good for it's currency.
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