Technical Analysis – GBPNZD cautiously positive; gains meet significant strain
GBPNZD is tackling the capping 100-day simple moving average (SMA) at 1.9880 at the ceiling of the Ichimoku cloud. The bullish demeanour of the Ichimoku lines look to be aiding the price’s recent ascent from 1.9000, which has so far recouped some losses of a three-month deterioration.
The short-term oscillators also reflect the improvement in positive momentum. The MACD, in the positive section, is increasing above its red trigger line as the RSI sneaks into overbought territory. Moreover, the stochastic %K line has turned back up after its recent drop below 80, endorsing the positive climb.
Should the bulls persist, a more sustained thrust would be required to overcome the resistance zone of 1.9880-1.9972. The region consists of the 100-day SMA, at the upper surface of the cloud, and the 200-day SMA located at the 50.0% Fibonacci retracement of the up leg from 1.8276 to 2.1675. Surpassing these obstacles, the 2.0115 resistance may impede the push towards the 38.2% Fibo of 2.0378 and the 2.0475 high overhead. Overtaking the latter, the price may test the 2.0713 high ahead of the 2.1000 handle.
Otherwise, if the nearby moving averages cap upside moves, initial support may occur at the 1.9632 low, where the red Tenkan-sen line lies, before the 1.9473 level and blue Kijun-sen line come into view. A step underneath may face the 50-day SMA at 1.9370 prior to the lower boundary of the cloud. Moving back below the cloud, the pair may challenge the key trough of 1.9000.
Overall, the short-to-medium-term picture appears neutral. That said a break above the 200-day SMA may reinforce a rally in the pair, while a close below 1.9000 could see negative tendencies return.Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
