Major Resistances Are Broken – Time To Go UpBoris Johnson’s Conservative Party absolutely crashed the UK Election securing a huge win over the Labour Party.
For the financial markets this is a great news, which is triggering an appreciation of the Sterling along with the rises on major exchanges. On many pairs with the GBP we do have fresh buy signals but one of the most interesting one, can be found on the GBP/NZD.
GBP/NZD with today’s upswing made two important steps for a buy signal. First of all, the price bounced from a crucial support on the 1.99. In addition to that, the price broke the upper line of the flag formation, which was with us since the middle of October. Once the daily candlestick will close above the upper blue line, the buy signal will be triggered.
EUR/USD is the second instrument in this analysis and we mentioned this pair yesterday. We said that the breakout of the neckline and the downtrend line should bring us a buy signal. This is precisely what happened and Friday gives us a beautiful bullish candle, which confirms the positive sentiment on the main pair.
Last one is also the old friend from the previous analysis – NZD/USD. The price was on the major downtrend line, which was a great occasion for a bearish taking profit action. We said that that price action traders, before placing an order, usually wait for a reaction and confirmation and that is a wise thing to do. Kiwi did not bounce from the resistance and broke this crucial down trendline instead. In theory, that is a start of a new up trend and a nice occasion to go long.
This article is written by Tomasz Wisniewski, Director of Research and Education at Axiory