Dear traders,

Last time I shared with you my thoughts about NZDUSD.

The pair is still in no man’s land and is looking more bearish than bullish at the moment.

There was a bearish engulfing pattern on the daily that pretty much erased my previous bullish thoughts.

Currently, I am not holding any positions and am not looking to short, either.

Here is how the pair looks on the daily:

bearish engulfing

I would not be surprised to see more selling pressure in the coming sessions.

What is important for me and what I will be looking for is when (and if) the pair makes a new low, how would the price react to this new low.

For now, there is no definite new low and this might be because NZDUSD is getting ready for a breakout.

One way or another, IMHO it is not a great time to do anything.

I will be staying on the sidelines on this one.

GBPUSD Trading Analysis 17/10/2022

On the other hand, GBPUSD is making the headlines almost every other day.

It has been a while since I last saw volatility like this for the past few years.

The Friday candle was an inside bar and it looks like the bearish momentum is set to continue.

I will be looking how the price will open and decide if I will take a short position or not.

Things I will be looking for are:

  1. The price retracing back to 1.1200
  2. A candlestick pattern rejecting this level

Here is how it could possibly look:

gbpusd

If I don’t see both of these factors aligning, then I will probably not take any action.

Happy trading,

Atanas

P.S.

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