The GBP/NZD is decidely bearish, but at the end of the Monday session we are seeing a hammer form on the daily chart at the 1.88 level. This pair could bounce, and sellers would welcome that as there are plenty of resistance area above that could provide nice selling spots. The 1.90 and 1.95 levels are particularly interesting to us if we get there. A break below the 1.88 on a sustained (read daily) basis, we would be interested in selling there as well.
The GBP/CAD pair seems stuck between the 1.55 and 1.52 areas. The consolidation pattern is forming a rectangle that is 300 pips tall, and as such, if we get the break down from that box, we would aim for a 300 pip move. The oil markets are presently holding the Canadian Dollar at bay, and if the Light Sweet Crude (CL) contract can finally break $100, the CAD should be bought up around the FX markets. This would puch this pair lower as well. If you are looking for a trade signal, we like selling at those areas mentinoed above, and if oil gets above the $100 mark as we are watching oil markets as well.
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