There was a new TC ‘SHORT’ signal delivered on the GBP/NZD earlier this week and this has now given up to 400 pips. Price action is now approaching a recent S/R level though and this may offer some support but any close and hold below this would be rather bearish suggesting a deeper pullback could be in store. These levels are noted along with charts within this post.
GBP/NZD 4hr: I was away when this signal was triggered but it has gone on to give 400 pips:
GBP/NZD daily: the 2.24 level is recent S/R and near to the daily 200 EMA. This region may offer some support here, although, a sustained breach would be bearish and suggest continuation:
GBP/NZD weekly: any close and hold below 2.24 would suggest continuation and this would bring the 61.8% fib, near the 2.15 region, into focus. After that, the previous S/R zone of 2.10 is also near the weekly 200 EMA which could make this region a subsequent target. Beyond that is the bottom trend line of the monthly chart’s triangle pattern, which happens to be near the psychological 2.0 level, and then there is the 1.77 region of a previous low:
GBP/NZD monthly: this chart shows the significance of the 2.10, triangle trend line (near 2.0) and the 1.77 levels:
This monthly chart has more data and show the importance of the 2.24 level:
Summary: the GBP/NZD has been bearish again this week but might receive some support from the 2.24 level. Any close and hold below that might support bearish continuation and, if so, the following levels are worth watching:
- 2.15 (near the weekly chart’s 61.8% fib).
- 2.10.
- the bottom trend line of the monthly chart triangle pattern (near 2.0) and, finally,
- 1.77.
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