empty
 
 
28.05.2015 11:29 AM
GBP/NZD price drop can be expected

GBP/NZD moved up since April 21 without facing any significant resistance. Finally, the price topped the level of 1.1482 on May 21 followed by a large sell-off.

After testing the top level, the pair found the resistance area around 2.1260 (R1), which is currently being rejected again. Applying the fibonaccy retracement to a low of 2.0562 (the last poit where uptrend trendline has been rejected) made on May 8 and a high of 2.1482 established back on May 21, it can be seen that 23.6% Fibonaccy support ( R1) has been penetraded and is currently acting as a resistance that has been already mentioned. At the same time, the H4 candle closed below 38.2% retracement level (S1) and the DeMarker oscillator formed a berish divergence.

Everything poinys to a potental reversal of the trend where GBP/NZD should start moving lower. Consider selling GBP/NZD near R1 (2.1263) targeting previously tested area as support and resistance, which is 76.4% Fibonacci retraccement at 2.0778. A break above R2 (2.1482) will favor bulls. However, this seems to be unlikely scenario.

Support: 2.1129, 2.1022, 2.0913, 2.0778

Resistance: 2.1263, 2.1482

This image is no longer relevant

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $9000 more!
    In May we raffle $9000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback