Trade recommendation (Barclays): Long GBP/NZD (entry, target and stop-loss levels)
This comes via Barclays, off to an early start to the week
We recommend going long GBPNZD
- Entry: 1.9354
- Target: 2.00 (above highs reached in December 2017)
- Stop-loss: 1.905
Barclays citing reasoning:
Apart from the benefits of a low sensitivity in the cross to risk sentiment, we highlight the positive seasonality for the GBP in April
- the GBP has not had a down month in April in the past 10 years with an average gain of 2.2% against the USD.
UK political uncertainty is continuing to fade, with our latest Brexit Investor Survey suggesting that investor sentiment has improved significantly following the developments leading up to the March EU Summit
While our expectations for UK inflation. retail sales and wages this week are broadly in line with consensus, momentum is positive for GBP and we think further gains are likely.
UK-EU informal negotiations may generate some noise for GBP markets and present risk to the trade, however.
In New Zealand. we see the possibility of a weak inflation print this week, given soft pricing intentions and business confidence in the latest Quarterly Survey of Business Opinion
What does ForexLive think?
Daily candles GBP/NZD chart