GBP/USD BULLISH SETUP DURING FED WEEK

Regarding GBP/NZD, we have identified a bearish setup with decreasing highs and lows. It's immediately noticeable that the price has dropped over 320 pips, equivalent to 2.5%, in the last two weeks, indicating that the market is already pricing in the Federal Reserve's interest rate hike.

In my view, I expect the price to potentially reach the level of 1.2812, where we have a Fibonacci level, which could be a possible reversal point with the necessary confirmations, of course. Subsequently, the price could turn long with a target of 1.31. This is also supported by the fact that the pound is expected to recover economically in the coming months, bringing in very positive macroeconomic data for the currency.

Let me know what you think in the comments. Happy trading and have a great weekend, everyone, from Nicola, the CEO of Forex48 Trading Academy.