GBPNZD FORECAST UPDATE
In the one-month timeframe, GBPNZD has mitigated the long-term supply zone (in red).
The long-term outlook on the monthly timeframe is largely bearish, though the pair was in bullish mitigation or correction. Presently on the monthly time frame, we have strongly protected highs with weak lows confirming our bearish market structure.
After the bullish correction, the pair turned bearish, targeting the unmitigated demand at the 1.80 price handle
Following the geopolitical risks in the United Kingdom, the GBPNZD collapsed to 1.81 levels and quickly formed a new high at the 2.0 price handle. The pair settled and then settled at the demand at the 1.88 price handle. Thereafter, the supply at 2.02 levels was mitigated.
Presently, on the 4-hour we have reversal confirmation. A change of character (CHOCH) and a break of market structure (BOS) were formed as the market grabbed liquidity as indicated.
We are anticipating a reversal on the horizon, and we have three options for selling limits:
- A fair value gap at 2.018705 price handle
- Liquidity at 2.018405 per handle.
- Fresh order block (FOB) in green at 2.017630 price handle.
Our projected exit sits at 1.889 price handles.
NB; our forecast is based on institutional order flow suitable for swing traders.
Risk Warning: CFDs carry a high level of risk to your capital, and you should only trade with money you can afford to lose. Trading may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer: I am not a financial advisor, and I am not telling you where or when to take a trade. I express my personal opinion only. Trading in financial markets involves risk. I am not responsible for any losses incurred due to your trading. I do not recommend any specific trade or action, and any trades you decide to take are your own.