Medium-term trend: BEARISH
Short-term trend: BEARISH
With inflation rising in both the UK & Poland this market has been fairly sideways after reaching a 5 year high at the end of last year. With the pace of Interest Rate Hikes in Poland outpacing the UK’s Monetary Policy Response, Real Rates may soon start to Rise in Poland vs the UK adding downward pressure to this Forex pair.
Against this back drop GbpPln has technically confirmed a Head & Shoulders Reversal Pattern at the right shoulder of a Head & Shoulders Pattern multiple degrees higher.
After the confirmed break lower, this Forex pair spiked on fears of a Russian invasion in Ukraine. With Russian troops pulling away from the border and diplomatic progress seemingly being made, this Forex pair is once again headed for the major breakout level of the 5.3450.
As a market which historically sells of very fast, this is a Risk On set up which could provide some great bearish opportunities in the near future.
One to watch!
This research is designed to provide trade ideas and any action taken on any of this research should only be done with full risk management procedures in place. If you would like to learn more about professional risk management or how to build a long/short portfolio, please check out the Full GMT Trading course here