GBPNZD Weekly Technical Outlook
The GBPNZD is a market that attracts my attention with a potential breakdown of an ascending trendline (red) traceable to 2016 on the monthly time frame. The bearish candlestick printed in November 2018 broke down the trendline, though not significantly.
On the weekly time frame, price action is operating on an ascending channel (red) associated with the ascending trendline seen on the monthly time frame. The channel support can be seen to extend to a lower trendline (blue) which indicates that price action is yet to break out of the trendline seen on the monthly time frame but is hovering around it. Last week, the market printed an indecision candlestick, akin to a long-tailed doji around the channel support. I expect some sideways of price action in the area in the early part of this week. Alternatively, we may see a northward retracement – which is likely to be temporary in nature, before a southward turnaround. The 1.86240 area is a likely resistance to such a northward retracement, while the 1.80250 area is an immediate horizontal support, and may be attractive as a target for bears.
The daily time frame shows recent price action disposing for a northward retracement. Such a retracement often finds a turnaround in a recently breached horizontal support area. A likely one is the 1.86230/1.87980 area (bound by magenta horizontal lines).
I am bearish GBPNZD and I will look for a sell trading opportunity with a daily-close, bearish setup.
I may be wrong. Trade safe and prosper.