Hello Traders!
Today GBP/NZD has tested and rejected the downtrend trendline, which has acted as the resistance. Price has found the top at 1.9760 and slowly started to move down. Recently we shared an analysis for the EUR/GBP currency pair where GBP is expected to get weak against the EUR. This analysis corresponds to the GBP weakness, but this time against the NZD.
Clearly, in order for the trend to become bearish, there should be at least lower lows and lower high pattern. Therefore, it will be important to see 1h and/or 4h closing price below the 1.9700 key psychological support. If/when this occurs, price is expected to initiate a corrective move down.
The support and potential downside target is located at 1.9552, which corresponds to two Fibonacci retracement levels, 50% and 61.8% as can be seen on the chart. Besides, the downside target also corresponds to the downtrend trendline, which crosses with the 1.9552 support on October 22. This could mean that GBP/NZD will reach the support within just a few trading days, suggesting it’ll be a fast corrective move to the downside.
In regards to the upside risk, 1h and/or 4h close above the 1.9760 will invalidate the bearish scenario, in which case uptrend is likely to continue.
Key support levels: 1.9700, 1.9552
Key resistance levels: 1.9760
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Today GBP/NZD has tested and rejected the downtrend trendline, which has acted as the resistance. Price has found the top at 1.9760 and slowly started to move down. Recently we shared an analysis for the EUR/GBP currency pair where GBP is expected to get weak against the EUR. This analysis corresponds to the GBP weakness, but this time against the NZD.
Clearly, in order for the trend to become bearish, there should be at least lower lows and lower high pattern. Therefore, it will be important to see 1h and/or 4h closing price below the 1.9700 key psychological support. If/when this occurs, price is expected to initiate a corrective move down.
The support and potential downside target is located at 1.9552, which corresponds to two Fibonacci retracement levels, 50% and 61.8% as can be seen on the chart. Besides, the downside target also corresponds to the downtrend trendline, which crosses with the 1.9552 support on October 22. This could mean that GBP/NZD will reach the support within just a few trading days, suggesting it’ll be a fast corrective move to the downside.
In regards to the upside risk, 1h and/or 4h close above the 1.9760 will invalidate the bearish scenario, in which case uptrend is likely to continue.
Key support levels: 1.9700, 1.9552
Key resistance levels: 1.9760
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new analysis daily.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
