GBP/NZD Skyrockets to Escape a Range


GBP/NZD surged on Friday, breaking above the key resistance territory of 1.9370, which acted as the upper bound of the sideways range that contained most of the price action since August 22nd. The break has confirmed a forthcoming higher high on both the 4-hour and daily charts, and in our view, it signals the continuation of the prevailing uptrend.

The bulls have also managed to overcome the 1.9455 hurdle, marked by the high of May 29th, a break that may have opened the path towards the 1.9580 zone, which is near the peak of May 22nd. They could take a break after testing that area, thereby allowing a small retreat, but as long as the rate would be trading above the upper bound of the pre-discussed range, we would still see a positive near-term outlook, and thus, decent chances of another leg north. The forthcoming positive wave may drive the pair above 1.9580, a move that could see scope for extensions towards the peak of May 21st, at around 1.9685.

Looking at our short-term oscillators, we see that the RSI just poked its nose above its 70 line, while the MACD lies above both its zero and trigger lines, pointing up as well. These indicators detect strong upside speed and support the notion for the bulls to stay behind the steering wheel.

On the downside, a dip back below 1.9285 could confirm the rate’s return back within the aforementioned sideways range, in which case we will abandon the bullish view. Such a slide may pave the way towards the 1.9115 support, marked by the low of September 12th, the break of which may allow the slide to continue towards the lower end of the range, at around 1.9050.

Chart

 


 

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

 


 

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

78% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD settles at 1.1050 on ECB, virus outbreak

The EUR/USD pair settled at its lowest for this 2020 after the European Central Bank announced a strategic review on inflation policy. Chinese coronavirus spreading abroad.

EUR/USD News

AUD/USD challenging weekly lows

The Aussie remains on the back-foot as the economy lost full-time jobs in December, while risk-aversion adds to the bearish case. Speculation mounts on an RBA rate cut next February.

AUD/USD News

Crypto Today: Bitcoin bears force critical

BTC/USD is currently trading at $8,400 (-3.40%) in the afternoon in U.S. hours, as markets bears break critical $8500 price mark, allowing for a wave of further downside pressure. 

Read more

XAU/USD bulls challenging 1573 resistance level

XAU/USD is trading in a bull trend above its main daily simple moving averages (SMAs). After rejecting the 1600 figure earlier in January, the metal has been consolidating near the $1560 per troy ounce.

Gold News

USD/JPY falls to fresh lows, correcting on WHO statement

USD/JPY has tumbled to print fresh lows since failing on the 110 handle, scoring 109.26 and meeting the 200-moving average on the four-hour chart.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures