Beware Correction Risks

The breakout trade in GBPNZD from 1.9690 has now hit its target at 2.0064. With the retail market still firmly short the pair and with both MACD and RSI bullish, there is room for a continuation higher here. However, given the recent move and the current stalling at the resistance area marked, some correction is to be expected. For those looking to stay long, while the bull channel holds, the 2.0265 level is the next upside target for bulls.

Keep An Eye On

In terms of domestic data, a raft of GBP data due on Friday will be the main focus for UK traders. However, the key US releases over the week are likely to be more tone-setting. Should NZD remain under pressure, GBPNZD is likely to continue higher near term. However, should we see any shift in the current dynamic, that is likely to fuel a correction.