Re-activating our short position on the GBP/NZD

Bulletproof Traders in-house trading activities presents our recently taken short position on the GBP/NZD. Targeting the short-term cycle, we believe price is back on the downside, making it’s way back to the big key-level support at 1.9406, and probably even beyond towards the previous lows around 1.9330.

After a few positive days of what we suspect was an expected technical correction, the pair simply couldn’t break through the strong resistance of 1.9602. The failure to cross over that level provided a reliable indication that price action could very well be back on the downside.

Will the US election results impact this pair much?

Yes it sure can. A clear decision for the next president would probably be positive for the stock market (regardless of the actual winner) and negative for the GBP/NZD and vice versa. Meaning, if we will nor have this election get sorted out soon, that would be negative for the stock market and positive for the GBP/NZD