GBPUSD AND NZDUSD MARKET ANALYSIS

Good afternoon traders, it's been quite a week in the financial markets filled with high impact fundamental releases from the Consumer Price Index (CPI) and FOMC Fed rate decision. Even with the releases, we still managed to take some positions on GBPUSD and NZDUSD. Into the charts, GBPUSD price rallied back to the major H4 supply zone at 1.28480 & 1.27950 which is the origin of the previous drop to the H4 low at 1.27000. Price gained strong bullish momentum after the CPI news rallying to 1.28500. Price formed candle closes above supply followed by a drop in a H4 bearish engulfing candle with candle closes below supply. Price retraced to retest supply before a continuation of the drop. Took sell positions during mid-London session at 1.27950 with SL at 1.28400. Setup taken is a rally base drop, a reversal setup and my target is at the 1st H4 low at 1.27000.

Price gained momentum during NY session dropping to 1.27500 confirming the bearish sentiment. Price gained more momentum pushing lower dropping 100 pips to the previous H4 low at 1.27000 which was my target for the trade.

NZDUSD price failed to break the H4 lows at 0.61000 just above demand and reversed rallying back to supply. Price rallied to supply at 0.62100 then formed a strong H4 bearish engulfing candle with candle closes inside supply. Price dropped lower at 0.61700 and formed candle closes below supply. Price retraced to retest supply before a potential continuation of the drop lower. Price rallied into supply at 0.61970 then formed a strong rejection wick with candle closes inside supply. Took sell positions during NY session at 0.61800 with SL at 0.62000. Setup taken is a rally base drop, a reversal setup and my target is at the previous H4 lows at 0.61000.

Price formed a strong rejection wick on H4 during NY session with candle closes inside supply followed by a strong drop. Price gained more momentum during Asian session dropping lower confirming the bearish sentiment. Price dropped 60 pips to 0.61350 and still showing more bearish potential.