Chart of the Day GBPNZD

GBPNZD Potential Reversal Zone – Probable Price Path

The US government requires China to close the Consulate General in Houston within 72 hours. The Deputy Secretary of State said that the decision was based on three reasons, including the persistent theft of American technology. US President Trump said that more embassies and consulates may be closed. The Chinese Embassy in the United States strongly condemns and resolutely opposes the US actions on this matter. Reuters reports that China is considering closing the US consulate in Wuhan.

Republicans in the White House and Senate are considering temporarily extending the unemployment assistance program, because Congress and the White House seem unlikely to reach a broader stimulus agreement before the expiration of this benefit. The United States signs a $2 billion agreement to book the first 100 million doses of the experimental coronavirus vaccine jointly developed by Pfizer and BioNTech SE

GBP: The fifth round of negotiations between the UK and the EU will end tomorrow. The spokesperson of the British Prime Minister James Slack said that there are still major differences in the negotiations between the UK and the EU on the post-Brexit relationship. The negotiations on the future relationship between the two sides are still constructive, and that the British government does not want the negotiations to be delayed until the fall.

NZD: No major updates out of New Zealand into Thursday, though the currency has been bid up on a resurgence in risk appetite. Earlier this week, the RBNZ announced it will reduce the frequency of TAF operations to weekly from July 28th, with auctions to be conducted every Tuesday.

From a technical and trading perspective, as discussed in today’s live market analysis session the GBPNZD is sitting on monthly ascending trendline support. On the daily timeframe price has retested lows from early July and this test has attracted sufficient binds to potentially print a tweezer bottom candlestick pattern, which could be confirmed as of tonight’s New york close, if so bullish exposure should be rewarded on a move back through 1.92 targeting an equality objective at 1.96

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