GBP/NZD bounces off an absolutely crucial, long-term support
|In today’s analysis we’re looking at GBPNZD which is currently bouncing off of an absolutely crucial support. We’ll be talking about the weekly chart, which is something for long-term investors, so there’s no reason for rushing to a chart straight after reading this piece.
GBPNZD is currently bouncing from up trendlines. One has connected higher lows since the end of 2018 (red) and the second one since the end of 2016 (green). In addition to that, we have the 23,6% Fibonacci, which is also a proven support for buyers.
The situation didn’t look optimistic last week because the price pretty much collapsed. But the first two days of this week brings us real hope. Buyers have until the end of the week to fight for the bullish engulfing pattern, of which we’re still missing around 250 pips of an upswing – nothing that can’t be done.
As long as the price stays above the 23,6% Fibonacci, the sentiment is positive but the breakout of that level can bring us a very strong, long-term sell signal. Luckily for bulls, after the first two days of the week, chances for that are rather limited.
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