Longer-term Downtrend to Maintain in GBP/NZD?

Trying out a strong technical long-term setup on GBP/NZD forward of the key occasion out of New Zealand. Will the upcoming central financial institution occasions get merchants again into promote mode?

Longer-term Downtrend to Maintain in GBP/NZD?

GBP/NZD Daily Forex Chart
GBP/NZD Each day Foreign exchange Chart

It seems just like the change to bear mode again in September is legit on GBP/NZD with the pair falling 1200 pips (-6.00%) since then, and with this bounce we’ve seen this week, the query now’s whether or not pattern merchants will hop again in?

Nicely, the reply to that query will doubtless relaxation on what we see from the Reserve Financial institution of New Zealand, who might be giving their latest monetary policy statement later the upcoming Asia session. The market is in search of a small bump in rates of interest from 0.50% to 0.75%, a state of affairs that’s doubtless the explanation why we noticed the Kiwi broadly rally for the final two months.

So with a hike is probably going already priced in, merchants might be looking out to see if it’s a one and finished occasion, or if there might be extra coverage tightening strikes to return. In the event that they do trace at extra hike quickly, then this bounce in GBP/NZD could rapidly attract sellers after the occasion, each elementary merchants and technical merchants who see the key space of curiosity retest, falling ‘highs’ sample and Fibonacci retracement space all lining up collectively.

If we don’t see hints of extra charge hikes or if the RBNZ surprises merchants with no charge hike in any respect, then this bounce in GBP/NZD could be the start of a stronger transfer greater. In that state of affairs, we’d be looking out for a sustained break of the falling ‘highs’ sample earlier than contemplating a possible lengthy place. Beside momentum technical gamers, this state of affairs may attract NZD lengthy revenue takers and recent NZD bears.

What do you all assume? Is that this week’s bounce in GBP/NZD a possibility to play the downtrend for the bears? Or have the bulls already taken again management? Let me know within the feedback part under!

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