Our free forex signals service trade today is a sell order on the GBP/NZD pair.
The GBP/NZD pair drops at the time of writing and it seems poised to develop a corrective phase. The price action signaled an exhaustion, but we still need confirmation before taking action on this market.
As you already know, the Bank of England hiked its rate by 0.25% in the February meeting. This is hawkish for the British Pound, but it seems that the GBP is overbought, so we cannot exclude a temporary decline.
Further rate hikes are expected in the upcoming monetary policy meeting, that’s why the Pound could retreat a little before resuming its appreciation. In the short term, the pair moves sideways after failing to make new higher highs.
3 Free Forex Every Week – Full Technical Analysis
UK Construction PMI 54.3 Points
Fundamentally, the UK Construction PMI is expected to remain steady at 54.3 points in January. Also, the MPC member Broadbent Speaks could bring some action on the GBP/NZD pair later today. The US is to release high-impact data as well later today, the economic figures could shake the markets.
Technically, the price registered false breakouts above 2.0470 and 2.0500 resistance levels signaling that the buyers are exhausted and that the rate could develop a corrective phase. Still, only a new lower low could really activate a potential drop.
Free forex signals – Sell GBP/NZD at 2.0325
Free forex signals entry price and takes profit
Instrument: GBP/NZD
Order Type: SELL STOP
Entry price: 2.0325
Stop Loss: 2.0546
TP1: 1.9804
My Risk: 1%
Risk / Reward Ratio: 1:2.35
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