GBP/NZD Rebounds, Stays Below A Downside Line
JFD Team | Jun 02, 2022 07:40AM ET
GBP/NZD traded lower yesterday after hitting resistance near the 1.9415 zone. The slide was stopped near the 1.9215 area, with the rate rebounding somewhat. However, the pair is still trading below the downside resistance line drawn from the high of May 17, and thus, we will consider the short-term picture to be still negative.
The bears may retake charge from near the downside line and perhaps aim for another test near 1.9215 or the 1.9175 territory, which attracted some buyers on May 5 and 6. If neither zone can stop the slide, we could experience extensions towards the 1.9045/75 area, marked by the lows of May 5 and Apr. 27.
Shifting attention to our short-term oscillators, we see that the RSI lies below 50, but it has turned up recently, while the MACD, although below both its zero and trigger lines, shows signs it could turn up. Both indicators detect slowing downside speed and support the notion of some further recovery before the next leg south.
To start examining whether the bulls have gained complete control, we would like to see a clear break above 1.9415. This could confirm the break above the aforementioned downside line and may initially target the 1.9490 barrier, marked by the highs of May 26 and 27. Slightly higher lies the peak of May 24, which, if also broken, could extend the advance towards the high of May 17, at 1.9670.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.