GBPNZD has reached a weekly demand imbalance located at 1.90. The British pound is getting very strong across the Forex cross pair, with GBPUSD breaking all-time lows and reversing after a fake-out. The British Pound cross pairs are providing many buy opportunities. GBPNZD is just one of them.
The newly created weekly demand level took control of the British Pound versus the New Zealand Dollar in the middle of December 20222. It’s been over a month since the imbalance has taken control and is providing buy opportunities in smaller timeframes. If you are an intraday Forex trader, you can use these bigger timeframe demand imbalances to open positions using indicators and oscillators in the faster intraday charts.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings, the underlying Forex cross-pair drops like a rock, or a negative earnings announcement and the cross-pair rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on GBPNZD Forex cross-pair.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
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