GBPUSD we are waiting for exit from the channel
According to yesterday’s post, the British Pound is still moving in the channel that created the flag. During the Asian session, there was an attempt to exit the mountain, but unsuccessful. The course quickly returned to formation.
At the moment we are on the border of the lower part of the flag. The price at this level is supported by recent price peaks, so breaking it will give a positive impulse for a deeper correction. In addition, the data to be released for the pound, on the one hand, better as retail sales are predicted to increase (hard to believe during the protracted country blockades), on the other hand, the „flash PMI” which is the main indicator of the economic condition is forecast to weaken.
USDCHF we expect a breakout
The Swiss currency continues in a downward trend, but recently we have seen several attempts to break the resistance. As we know, the level that is tested several times becomes weaker and therefore has a greater chance of breaking it. At the beginning of the week I was already getting ready for long positions, but the market did not live up to expectations, so I look forward to further developments.
The currency pair approached the support level. Depending on how it behaves in the European session, we will make a decision on the further direction. In the case of another resistance test, we wait for a breakout and consider long positions. If this does not happen, the trend continues to decline.
NZDCAD continues declines
The New-Zealander to the Canadian corrected a bit faster than I expected, but as the saying goes: „the market is not a pharmacy”. The current rebound from the resistance gives us a positive signal for further price drops with the range marked in the image. For traders of this currency pair it is known that entering a good trend can result in holding positions for up to 2 months, adding on corrections. A currency pair rarely reacts as aggressively as, for example, gold or indices.
