Time this Reversal using MACD Strategy

As the name suggests, the MACD (Moving Average Convergence Divergence) indicator tracks the relationships between exponential moving averages, and the two lines can be described as convergent or divergent. The signal line is a 9-day EMA (Exponential Moving Average) of the MACD line and is commonly used as a trigger for buy and sell signals. MACD is often displayed with a histogram which shows the distance between the MACD and its signal line.

The New Zealand Dollar, Great British Pound (NZD/GBP) weekly chart is potentially showing a MACD crossover (MACD crossing the signal line) on the horizon, at the point where this currency pair meets horizontal resistance and descending trend line resistance whilst holding below its 200 period weekly moving average.

Midterm sellers of this pair will be looking to get into position around these current levels (5211/5190.0) eyeing 5070s for profit-taking, placing their stop above the 200 SMA. Above this triple resistance cluster (1) would be considered bullish negating this bearish outlook.