Yellow zone - critical supply/demand area based on the weekly timeframe
Red zone - critical/supply demand area based on the daily timeframe
According to the latest GBP COT Report we can see that the Sterling is starting to show a strong momentum in favour for the long contract sizes. If this continues, we can see a possible attempt for the GBP/NZD to reach the 2.20000. The New Zealand Dollar on the other hand doesn’t show us dominance for either long or short contract sizes based on the COT Reports from the beginning of June.
For me there is one possible scenario:
1.From a monthly perspective we are far away from the equilibrium zone and the first step in getting close to it is a possible close over the monthly dotted trendline near 2.20000.
Price will be drawn to that level due to the fact that it is a major supply area. It is a quadruple confirmation point which aligns perfectly with the monthly dotted trendline, a monthly critical supply zone, the weekly upper trendline and with the golden 0.618 Fibonacci level.
Before that, we will see a few corrections that can be used as entry points for our trades.
Happy trading!
Red zone - critical/supply demand area based on the daily timeframe
According to the latest GBP COT Report we can see that the Sterling is starting to show a strong momentum in favour for the long contract sizes. If this continues, we can see a possible attempt for the GBP/NZD to reach the 2.20000. The New Zealand Dollar on the other hand doesn’t show us dominance for either long or short contract sizes based on the COT Reports from the beginning of June.
For me there is one possible scenario:
1.From a monthly perspective we are far away from the equilibrium zone and the first step in getting close to it is a possible close over the monthly dotted trendline near 2.20000.
Price will be drawn to that level due to the fact that it is a major supply area. It is a quadruple confirmation point which aligns perfectly with the monthly dotted trendline, a monthly critical supply zone, the weekly upper trendline and with the golden 0.618 Fibonacci level.
Before that, we will see a few corrections that can be used as entry points for our trades.
Happy trading!
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