Good day traders! GBP/NZD has been trading higher within an upward sloping channel since the low back in November 2016. Price has on three occasions failed to stay above the 0.382% Fib retracement level, measured from the August 2015 high, and is currently trading lower after price pipped last year October’s high and reversed.
The current move lower might be corrective within a larger bullish phase and could reach the 1.9150 – 1.9420 price zone before price finds substantial support and turns higher again.
GBP/NZD has been creating higher highs for more than three years now and if we do get a reversal, then price could head towards last year’s high at 2.0559 or even higher towards my 0.5% Fib retracement level at 2.1021.
A break above my center channel line should confirm that the bulls have taken firm control again but although my bias is bullish, I also have to consider that this entire move higher from the November 2016 could be one large correction.
Either way, there is a swing trading opportunity here to go long and then reverse direction at a much later stage.
Until next time, happy and safe trading.