Long GBPNZD - Anticipating good GBP's Data (Double Trade)
I had a really tough time choosing which pairs to trade for this news. Early morning the surprisingly dissapointed Business Confidence releases sent both AUD and NZD lower. As these two are the ones I've consider short against GBP I now face with a dilemma.
If I am to go full Short now, I have a little to bank as the move may have overextended but then again this is in line with Fundamental thus provides the path with least resistance. Retail sentiment today provides little clue too as it is in line with GBP fundamental, limiting my edge as a contrarian. This is why I only entered 1/2 a position.
I'm in at 1.8226, SL below Pivot 1.8212 and Round level 1.82, the best TP is around 1.83 level.
If I am to go full Short now, I have a little to bank as the move may have overextended but then again this is in line with Fundamental thus provides the path with least resistance. Retail sentiment today provides little clue too as it is in line with GBP fundamental, limiting my edge as a contrarian. This is why I only entered 1/2 a position.
I'm in at 1.8226, SL below Pivot 1.8212 and Round level 1.82, the best TP is around 1.83 level.
Komen:
I was stopped out in a horrifying fashion. I was not at the desk and had zero what was going on as there is nothing on the economic calendar pointing to this NZD's strength but I knew such large swing must have been caused by a fundamental shift in the market.
And as I'm back to the desk and research, this is why:
"The unusual volatility has been giving investors jitters.. The New Zealand dollar, the 11th most traded currency in the world in 2016, jumped to $0.7265 after the poll was released from $0.7224.
The Newshub-Reid poll showed backing for the National Party up 4 points at 47.3 percent and, in a double whammy for Labour, showed the opposition party’s support down 1.6 points at 37.8 percent.
“It’s a huge setback for Labour,” said Bryce Edwards, Wellington-based analyst at Critical Politics. “It really just shows how volatile this election campaign is.”
The National Party has vowed to support free trade as global protectionism rises, in particular, by championing the Trans-Pacific Partnership pact, which Labour has said it would renegotiate."
Well so being ignorant to the current political landscape can prove fatal. Another valuable lesson learnt.
And as I'm back to the desk and research, this is why:
"The unusual volatility has been giving investors jitters.. The New Zealand dollar, the 11th most traded currency in the world in 2016, jumped to $0.7265 after the poll was released from $0.7224.
The Newshub-Reid poll showed backing for the National Party up 4 points at 47.3 percent and, in a double whammy for Labour, showed the opposition party’s support down 1.6 points at 37.8 percent.
“It’s a huge setback for Labour,” said Bryce Edwards, Wellington-based analyst at Critical Politics. “It really just shows how volatile this election campaign is.”
The National Party has vowed to support free trade as global protectionism rises, in particular, by championing the Trans-Pacific Partnership pact, which Labour has said it would renegotiate."
Well so being ignorant to the current political landscape can prove fatal. Another valuable lesson learnt.
I'll be tracking all the GBP pair sentiment and look for an extreme overbought and short it (GBPAUD seems likely at the moment of writing).