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Kiwi falls as RBNZ stays neutral

RBNZ left official cash rate at 1.75%. While that was not surprising, market did expect them to send a hawkish signal, following improvement in inflation and labour market data. The bank remained neutral and the Kiwi fell more than a cent immediately after the release.
50.0% retracement of the 2015 - 2016 rally, at 0.6785, is the next target and below there the bottom of the 2016 - 2017 channel, near 0.675. On the upside, 0.69 is the first obstacle with stronger resistance found in 0.695 - 0.70 …
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It's probably still to soon to call GBP/USD bottom

Monthly chart:
Current medium-term downtrend has broken the longer-term uptrend, which is marked on the chart as trendline that supported the pair in 2009, 2010 and 2013. After briefly trading below 1.50, the pair stalled just above the level. July 2013 low of 1.4813 should provide some support and, if it goes, there's little to stop the decline until May 2010 low at 1.4228.
Weekly chart:
Monthly trendline, 1.55 level and 20 week SMA will provide resistance zone (1.5250 - 1.5550) in case of a d…
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al_dcdemo avatar

It was an exceptional week for the pair, in which all three major PMIs showed improvement. The pair staged strong technical breakout from four-week consolidation/wedge and then set the scene for a promising reversal attempt. In the end it was all slightly marred by a very strong US labour report, but if the Dollar won't be able to follow through, this latest dip may prove to be a great buying opportunity.

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al_dcdemo 15 2月

The pair started the week on a slightly weaker note, but lack of follow through after last Friday's decline gave the bulls much needed encouragement to hold the price above 1.52. It was not until Thursday, that the pair decisively broke higher on what was generally viewed as hawkish Inflation Report, breaking above the descending trendline that capped the pair since July 2014 and 50 DMA in the process. Next major resistance is now at 1.55 before 100 DMA just above 1.56.

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al_dcdemo 22 2月

Weekly range was small (~150 pips) for usually volatile Cable. After jumping on much better than expected jobs report and neutral but positive MPC Minutes on Wednesday, it then failed to follow through on dovish FOMC Minutes. The rally stalled ahead of weekly resistance at 1.55. On Friday it followed the Euro lower but it still managed to close near previous week's close. Outlook now depends on incoming US data, but will need to convincingly break 1.55 to confirm bullish bias.

WallStreet6 avatar

This one is way off and doesn't seem it will get any closer. If it makes you feel better I was also betting on a retracement down south. But good analysis though.

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al_dcdemo 24 2月

Thanks! Probably we were not the only ones, as at that point it looked like momentum even accelerated.

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