The GBPNZD PreMarket

In the forex markets, premarket is really only early Sunday morning. With charts frozen until the afternoon open, this can be the best time to find insights before charts start ticking again.

GBPNZD weekly chart

Because the $GBPNZD has not spent much time at these levels, it is taking some years for this currency pair to truly trend again.

GBPNZD weekly

Zoom in on the weekly chart and we can see that this pair has been trading rangebound between 1.98 and 1.9270. Last week’s price action tested the intermediate highs at 1.9625 and closed the week in the middle of the channel below the key psychological level at 1.95. The new week open should continue momentum towards the bottom of the channel at 1.9270. That is a key level to the downside for $GBPNZD short term as it continues to consolidate the larger bear trend.

The GBPUSD PreMarket

In the forex markets, premarket is really only early Sunday morning. With charts frozen until the afternoon open, this can be the best time to find insights before charts start ticking again.

Cable closed the week with a Black Friday breakout above 1.6000 and managed to close well above that level. The $GBPUSD spent all last week being supported by the 50% Fibonacci level of the rally from the July lows to the September highs.

GBPUSD daily chart
Last week’s move

GBPUSD daily chart

Now looking to the week ahead, I can see the $GBPUSD toy around 1.60 in the market open as buyers and sellers jockey for position. However, dips below should be met with bids, even as low as the 50% Fibonacci level of Friday’s breakout. If price gets back above or remains above 1.60 in the early week, it is highly likely that price will move towards the 1.6175 highs.

GBPUSD weekly chart

Despite the current bullish momentum, the $GBPUSD is still rangebound in the longer term. So don’t get caught up in this week’s bullish scenario. We still do not have true direction in this pair until it can close above 1.6300 or below 1.5230.

 

The GBPAUD PreMarket

In the forex markets, premarket is really only early Sunday morning. With charts frozen until the afternoon open, this can be the best time to find insights before charts start ticking again.

The $GBPAUD is in a long term consolidation pattern with price currently hanging out in the middle of the weekly chart channel. So when the lows held at 1.5182 2 weeks ago, it is worthy to note that price still means to head to the bottom of the channel when price failed higher last week again at 1.5425.

 GBPAUD weekly chart

GBPAUD weekly chart

Despite bearish momentum, price managed to close above 1.5300 support level and 50% Fibonacci level. So to start the week the possibility for spikes higher remains at the market open. Pops higher, however, should be met by sellers at or ahead of 1.5425 resistance level aiming to take price towards 1.50 in the coming weeks. Only a close above 1.55 changes the short term momentum to bullish.

The EURGBP PreMarket

In the forex markets, premarket is really only early Sunday morning. With charts frozen until the afternoon open, this can be the best time to find insights before charts start ticking again.

I have been trading the $EURGBP very actively these past 2 weeks. The weekly chart continues to be constructive especially as price held support at 0.7950 to head higher back to 0.8110 on Friday.

EURGBP weekly chart

Last week started at 0.8003:

EURGBP daily chart
Hindsight is 20/20

EURGBP daily chart as of today premarket

Now we sit at 0.8090 to close that week. That close puts 0.81 at play to determine direction in price action this week. A dip to 0.8050-30 is still possible when markets open because of the close below 0.81 but should be short-lived. I expect price to see itself back above 0.8100 later in the Monday session. Only a close below 0.80 changes the bullish picture in play on the weekly and daily charts.

EURGBP Update: bears moving in

EURGBP 8 hour chart
$EURGBP price action today proving once again why I don’t like to buy euros.

While the $EURGBP daily chart started the week looking very constructive, price today collapsed ahead of the 50% Fibonacci level of last week’s price decline. The subsequent price drop found support at the 0.8000 level but bounced again back to 0.8035 intraday. Only a close above 0.8030 would make the bullish picture at the start of the week stand. However, as we head into the New York close, price is below the key 0.8030 level. Watch where price closes the day. If below 0.8030, any pop higher will be met by sellers. If above 0.8030, watch price to move back towards the highs at 0.8050-70. In any case, sellers seem to be lining up making $EURGBP look short term bearish on its failure to get to and break back above 0.8100.

Disclosure: No position