GBP/NZD Rebounds Once Again from Key Support

GBP/NZD traded higher during the Asian morning Friday, after hitting once again support at 1.9110 during the US session yesterday. Since April 14^th, the rate has been trading in a trendless mode, between that barrier and the 1.9480 hurdle, and thus, for now, we will hold a neutral stance with regards to the short-term picture of this exchange rate.

That said, given that the overnight rebound from 1.9178 was the fourth since mid-April, we would see decent chances for further recovery. Initially, we may see a test near yesterday’s high of 1.9335, the break of which could extend the advance towards the 1.9435 barrier, marked by Wednesday’s peak. Slightly higher lies the upper end of the range, at 1.9480, which marks the high of Tuesday and may provide additional resistance.

Taking a look at our short-term oscillators, we see that the RSI rebounded, and although it is still below the 50 line, it seems ready to cross higher soon. The MACD is below both its zero and trigger lines, but it has bottomed as well. Both indicators suggest that the downside momentum is diminishing, and that the rate may start picking upside speed soon. That’s why we see decent chances for further recovery within the current sideways range.

Now, in order to start examining whether the short-term outlook has turned negative, we would like to see a dip below the key support of 1.9178. This will confirm a forthcoming lower low on both the 4-hour and daily charts, and may initially pave the way towards the low of March 3^rd, at 1.9110, or the low of March 1^st, at 1.9083. If those zones are not able to halt the slide and break, the decline may extend towards the psychological round figure of 1.9000.

Disclaimer:

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. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD 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 prohibits the duplication or publication without explicit approval.