GBPNZD Weekly Technical Outlook
Technically, the GBPNZDY market is still range bound on the monthly time frame. In June 2019, the market printed a bearish candlestick as follow-up of the bearish pinbar printed in May but price action is located just a few pips above the 1.87890 horizontal support, which is the lower part of the range. A breakdown of the 1.87890 area is likely to expose the 1.80890 handle.
The weekly time frame shows a GBPJNZD market operating in a consolidating, horizontal channel. An inner ascending channel (red) recently formed has been breached southwards. Looking left and judging by the preceding price action patterns, we are likely to see a bearish continuation with the 1.84030 inception area as target. The bearish candlestick printed two weeks ago broke down a minor horizontal range but there was no follow through last week leading to the printing of a doji-like candlestick which pierced but did not break the 1.87890 horizontal support. We may see a pullback to an area of value early this week, perhaps the 1.90605 monthly pivot, which adjoins the base of the horizontal range broken down two weeks ago, before a bearish continuation.
A falling trendline (black) is in play as resistance on the daily time frame. Bulls took price action northwards from a horizontal support are last week Thursday and had a follow-up on Friday. However, given the holidays in the USA and Canada last week we may have to await further price action in the early part of this week. A pullback to an area of value, say the 1.90605 area or the falling trendline (black) is likely to be temporary and may give way to a southward turnaround.
I am bearish GBPNZD on a medium-term basis. The short term is likely to be sideways or a bullish move and temporary in nature.
I may be wrong. Trade safe and prosper.