GBP/NZD Price Analysis: Bulls and bears get set for a barroom brawl below daily support

GBP/NZD comes as a compelling trade on the back of a northerly projection into a key supply area. 

We have the reserve Bank of New Zealand on Wednesday and the longer-term outlook remains highly uncertain which leaves all options on the table.

There should be some bearish headwinds for the bird on the back the meeting, although the pound is hardly a bullish prospect in the same regard.

Nevertheless, there is some upside in the charts while the cross sits above the daily structure.

However, a break to the downside opens prospects of a bearish head and shoulders and medium-term bearish play on the cards as illustrated in this top-down analysis. 

Monthly chart

The price has corrected back towards a high-level os supply and in the realms of a 38.2% Fibonacci retracement target.

Weekly prospects of a move back to higher volume

Daily chart

As illustrated, the price action can go higher while the pair holds above the structure.

However, a break below will open the doors to a barroom brawl which should result in a downside move and form a bearish head and shoulders.

GBP/JPY Head & Shoulders prospects