Today, I have a real treat for the technical traders, especially those that use patterns and Fibonacci retracements. This piece is about the current situation on the GBPNZD, where we have a very handsome bearish situation with the pair respecting all major, price action principles.
End of the flag
Since the beginning of the year, GBPNZD is in an uptrend. Drop traditionally was sharp and then we entered a correction stage, which had much lower volatility. Correction is a beautiful flag pattern (black), which actually came to an end this week. What’s remarkable here is that the price, apparat from respecting the flag lines, also respected the Fibonacci lines. 23,6% was crucial support and the 50% was an ultimate resistance. In the meantime, we were also locally respecting the 38,2%.
One last thing
As we said, GBPNZD already broke the lower line of the flag, which technically brings back the major sell signal. Last obstacle to a full bearish mode is a 23,6% Fibo, once it will be broken, even those unconvinced yet could join the selloff. The potential target is at April low. Once the 23,6% Fibo will be broken, getting there should be just a matter of time.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended Content
Editors’ Picks
US CPI matched consensusin April, rising by 3.4% over the last twelve months – LIVE
US inflation figures tracked by the headline Consumer Price Index (CPI) rose in line with previous expectations during last month by 3.4%, while the Core print gained 3.6% from a year earlier.
EUR/USD advances to fresh tops post-US CPI
The weak stance of the Greenback encourages EUR/USD to gather extra steam following the release of US inflation data in April, which came in lower than expected, as measured by the CPI.
GBP/USD extends the recovery past 1.2600 on US CPI
GBP/USD maintains its upward momentum well and sound and breaks above the 1.2600 mark on the back of extra losses in the US Dollar after the release of US inflation data tracked by the CPI.
Gold climbs to three-week peaks following US inflation
Gold prices uphold their positive price action following April’s US inflation data, which came in short of expectations according to the CPI, while US yields maintain their bearish trend unchanged so far on Wednesday.
Ripple’s discounts for institutional clients stir debate among attorneys discussing SEC lawsuit
Ripple price consolidates in a tight range around $0.50 on Wednesday as the Securities and Exchange Commission (SEC) legal battle against payment-remittance firm Ripple intensifies with two key issues in focus this week.