GBP/NZD 1H Chart: Long-term channel in sight
The British Pound has been depreciating against the New Zealand Dollar since the beginning of October when the currency pair reversed from the upper boundary of a long-term ascending channel circa 2.0500.
The general is expected to remain south. Technical indicators for the short term support bearish scenario. It is likely that the exchange rate aims for the lower channel line located near 1.9250.
If given channel holds, a reversal north could occur and the pair could target the resistance cluster formed by a combination of the weekly and monthly PP, the Fibonacci 23.60% retracement, as well the weekly R1 in the 1.9733/1.9838 range.
The general is expected to remain south. Technical indicators for the short term support bearish scenario. It is likely that the exchange rate aims for the lower channel line located near 1.9250.
If given channel holds, a reversal north could occur and the pair could target the resistance cluster formed by a combination of the weekly and monthly PP, the Fibonacci 23.60% retracement, as well the weekly R1 in the 1.9733/1.9838 range.
The currency pair was trading near the bottom border of the channel pattern at 1.8784 during the morning hours of Thursday’s trading session.
Technical indicators demonstrate that the decline for the GBP/NZD pair could continue within this session.
However, a support level formed by the monthly S2 at 1.8662 might hinder the currency exchange rate from falling today.