GBPNZD Forecast: Corona may happen to be the antidote of GBPNZD
While the possibility the global coronavirus outbreak may have spread to New Zealand, the government is in alarm mode.
The biggest problem for the country is the possibility of slowing China, where it exports most of the raw material and industrial goods.
While the slowdown in the last 29 years has had the potential to affect the additional slowdown due to the virus in China, the trade agreement with the US may cause a decrease in the import of some of the products from New Zealand.
On the UK side, due to strong data, together with Brexit, which is expected to be concluded in agreement, the weakness of the possibility of a new interest rate cut at the end of the month may be a catalyst for Sterling to gain strength in the medium term.
The possibility of interest rate cuts in BOE decreased from 61% to 54% after strong employment and PMI data.
Weekly Chart :
After the potential breakout of Cup & Handle neckline at 2.05000, strong rally can be seen in the medium long term in the pair.
After breaking the contracting triangle, the pair tested the broken structure and completed its correction.
What can be done ?
- Long Term Bullish Trend is valid as long as it stays above 1.94000
- Shorter term 1.97000 is the key support and our targets are:
Then we will wait for the breakout of the Cup & Handle for a rally.
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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money