GBP/NZD DAILY
The exchange rate made a 50% retracement connecting all time lows and last year’s highs last week. Rate quickly rebounded and broke what seems to be a reversed head and shoulders pattern.
In a quiet friday holiday trading day price made a successful test on the neckline.
I will probably be looking for a long entry sometime next week and will target 2.0000 and 2.0250
Martin Janson
GBP/NZD was in a strong and consistent uptrend during the recent days that buyers were successful in obtaining the highest price of 1.96327. price with reaching to the Down Trendline which is shown in the picture below ( made of 2 Top prices) and the important Resistance level(Support to Resistance) of 1.96327 has stopped from more ascend( Buyers used this level to exit their trades) and with formation of a top price in daily time frame has prepared a field for descending of price.
According to the previous day changes, previous day candle was closed as Spining Top candlestick pattern which shows vulnerability of ascending trend and potential for formation of a Top price in this range.As it is obvious in the picture below, between the Bottom of 1.90822 and Top price of 1.96327 there is AB=CD harmonic pattern with ratios of 61.8 and 127.2 that warns the potential of descending from the D point of this pattern.Generally until the D point in daily time frame is preserved, there is a potential for price reformation and descending.
GBP/NZD has also been on a rising channel since mid-2013 and is currently reacting to (meaning finding resistance at) the 200 SMA. With Stochastic (14,3,3) also in the overbought region, we might see another retest of the .9300 levels before the pair pops higher.
[QUOTE=“PipDiddy;622675”]GBP/NZD has also been on a rising channel since mid-2013 and is currently reacting to (meaning finding resistance at) the 200 SMA. With Stochastic (14,3,3) also in the overbought region, we might see another retest of the .9300 levels before the pair pops higher.[/QUOTE]
I agree as well as the nzd interest rate report is comming out tommrow if they raise rates that could cause the pair to plunge
I believe markets have already priced this in. There is 97% probability for a rate hike, so unless RBNZ suprises and doesn’t take it up all the way to 3.25, the ‘‘plunge’’ shouldn’t be that deep.
