Considering the memory at the NZ$1.98000 zone, Investors have been hesitant to keep buying the Pound New Zealand Dollar (GBP/NZD) exchange rate higher, as the Pound’s "bullishness" runs out of steam every time it reaches this level which is represented on the chart with Rejection I to IV.
Tendency: Downtrend ( )
Structure: | Trendline
Observation: i. The Trendline indicated on the chart has been a significant factor in deciding the prevailing bias of participants in the market since the beginning of the year 2021.
ii. It is important to note that as soon as the price touches NZ$1.98000 a sharp rejection happens and this has occurred three different times this year (March, May & June); This is a clue into the immense strength of Sellers at this juncture in the market.
iii. Focus shall be below Key level I @ NZ$1.9670 for selling opportunity with confirmation at the Breakdown/Retest of Trendline.
iv. Breakdown/Retest of Key level II @ NZ$1.9200 shall welcome addition to existing running position.
v. CAUTION: Please note that confirmation remains below Key level I as any significant Break above NZ$1.98000 shall welcome a rally continuation at retest... Trade consciously!:)
Trading plan: SELL confirmation with a minimum potential profit of 500 pips.
Potential Duration: 10 to 20days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
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Past performance is not necessarily indicative of future results.