Focus on Sterling for today…
Today’s Asian session was pretty subdued, with the only real focus being on the recent RBA rate announcement which came out as expected. Furthermore, given the current risk sentiment the AUD and NZD remained strong during yesterday’s sessions as well as early Asian trade today.
The biggest focus for today’s calendar will be the GBP Services PMI release. The GBP has been under a lot of brexit related pressure lately, and given the current climate with regards to rate hike expectations this services release is very important in our opinion. If we get a miss we could see the GBP sell increase, however a surprise to the upside would offer some relief but would be short lived in our opinion.
Our pair selection for today:
Given the GBP weakness and AUD strength we have chosen the GBPAUD as one of the pairs we will be watching closely today to look for trading opportunities. Another pair to watch out for is the GBPNZD (see charts below)
GBPAUD – H1
GBPAUD – M30
In terms of intraday opportunity, we think the GBPAUD could offer the best chance of a good move during today’s trading sessions. We will wait until the GBP Services PMI news has been released before considering any positions on this pair.
With the current technicals, there is recent resistance areas that we would be interested in looking for short opportunities, as well as the recent support area where we would look for another sell opportunity if the support area should fail and we get a rejected retest of the zone.
This pair has been in a very long and steep downtrend, so keep that in mind in terms of shorting positions, you don’t want to get caught on the wrong side of a correction in this market.
GBPNZD – W1
GBPNZD – W1
The current price level for the GBPNZD is a key support area for the pair. The buyers has defended this area with a lot of vigor in the past. If this level breaks it could open up a move a lot lower on the pair, especially if we see a retest of the level with a follow up rejection.
This is a good pair to watch for medium term opportunities so make a mental note of it.
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