The GBP/NZD could have reached the bottom with a potential of a long term trend reversal. This forecast is based on the most recent price action, where GBP/NZD broke above the downtrend trendline and, on the corrective move down, rejected the downtrend and the uptrend trendline.
Nonetheless, there is one important resistance level to overcome before/if the price will continue rising. This is the 1.9030 resistance, which previously acted as the support and during the past 4 trading days has been acted as the resistance. Up until now, this resistance area is being strongly defended by bears, yet, there is no confirmation that the downtrend will continue. Because as long as GBP/CHF remains above 1.8912, buying pressure could be dominating.
If at some point, there will be a break above the 1.9030 level, buyers are likely to step in, which is likely to send the price towards one of the next resistance areas. The nearest one is located almost exactly at the 1.9100 psychological level, which is also confirmed by 50% Fibonacci retracement. And upon the break above that resistance, the next target could be located at 1.9267, which is confirmed by 88.6% Fibs. Perhaps this will be the final upside resistance before the strong downside correction. But at the same time, if this is in fact a trend reversal, 1.9267 will get broken and further upside potential could be huge.
On the downside, the support area to watch is between 1.8912 and 1.8895. If GBP/NZD will get below this zone, the bullish forecast will get invalidated and the long-term downtrend can be expected to continue.
Key support levels: 1.8912, 1.8895
Key resistance levels: 1.9030, 1.9106, 1.9182, 1.9267
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Nonetheless, there is one important resistance level to overcome before/if the price will continue rising. This is the 1.9030 resistance, which previously acted as the support and during the past 4 trading days has been acted as the resistance. Up until now, this resistance area is being strongly defended by bears, yet, there is no confirmation that the downtrend will continue. Because as long as GBP/CHF remains above 1.8912, buying pressure could be dominating.
If at some point, there will be a break above the 1.9030 level, buyers are likely to step in, which is likely to send the price towards one of the next resistance areas. The nearest one is located almost exactly at the 1.9100 psychological level, which is also confirmed by 50% Fibonacci retracement. And upon the break above that resistance, the next target could be located at 1.9267, which is confirmed by 88.6% Fibs. Perhaps this will be the final upside resistance before the strong downside correction. But at the same time, if this is in fact a trend reversal, 1.9267 will get broken and further upside potential could be huge.
On the downside, the support area to watch is between 1.8912 and 1.8895. If GBP/NZD will get below this zone, the bullish forecast will get invalidated and the long-term downtrend can be expected to continue.
Key support levels: 1.8912, 1.8895
Key resistance levels: 1.9030, 1.9106, 1.9182, 1.9267
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.