Good day traders! The recent spike higher in the GBP/NZD ended at a confluence of an upper channel line and the upper median line of my green pitchfork. Price also failed to close above a 50% Fib retracement level and closed lower on a weekly timeframe leaving a large wick behind.
Last week Monday’s spike also ended at the upper channel line of another channel (in blue) and price has since nearly reached the lower channel line.
The decline after last week’s high looks very overlapping and has been confined by a downward sloping channel. Price might very well continue lower and test the lower channel line again, but GBP/NZD might have the potential to eventually retrace a part of this recent decline or even make a new high.
Should price break above the 2.0551 level, then GBP/NZD might move higher towards the 2.0906 and 2.1107 price levels which are Fib retracement measured from the recent high.
More updates to follow.
Targets: 2.0906 and 2.1107
Until next time, have a great day and stay safe!