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MujkanovicFX
Sep 23, 2019 11:14 AM

GBP/NZD at important resistance ahead of Brexit Short

British Pound/New Zealand DollarFXCM

Description

Similar to GBP/AUD, the GBP/NZD pair is at an important resistance zone and today's candle already shows increased selling pressure.

The pinbar pattern of Friday is a sign that the pair could have difficulties to break above the 2.00 level in a new attempt. The level is also an important psychological resistance.

Notice the hidden bearish divergence in the RSI.
Comments
ahmedzahid2799
Nice post.. Do you think we can see 2.000 again before long ride down?
MujkanovicFX
@ahmedzahid2799, Hi Ahmed, I doubt so according to technicals. The price reached 2.00 on a large momentum, which usually signals a strong reversal as well. Friday's and today's candlestick (let's wait for it to close) show that the market rejects higher prices quite strongly. On Friday, the pair reached a high of 2.0003, meaning there was a significant number of sell orders placed exactly at the 2.0000 level.

However, let's not forget that the pound will be affected by any Brexit news, whether positively or negatively.
ahmedzahid2799
@MujkanovicFX, Thanks.. Yeah after it hit 2.0003 after few hours i placed a sell limit at 2.0000 but this didnt trigger as price has not come back to that range. Hopefully a good sell opportunity presents itself for me soon
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