GBPNZD: The MACD turned in. A first sign of lower prices?
On Friday morning the GBP/NZD pair fell below the 1.921 level and below the support line from its low on the 15th of February. The market is in a problematic zone between 1.921 and 1.901. If the market falls below 1.901, further price drops seem plausible. So this range will decide whether the prices rise further, or perhaps even fall.
If the market finds support and can defend the 1.901 range, there is the possibility to see prices rising through the 1.935 level. This area shows a significant structural level and thus a resistance for further rising prices. If the bulls succeed in lifting the price through this area, there may be additional resistance at the level of 1,995.
However, if If the market falls through the 1.901 thresholds, and the bears take over, there would be further opportunities for support in the area of 1.8841. If the market also falls through here, support in the 1,867 range could be possible.
If the market falls sustainably through the 1,8673 area, this would cloud the overall picture.
The MACD indicator shows signs of a reversal. This means that the MACD line has crossed the trigger line from top to bottom, which is considered a bearish sign. The histogram has moved into negative territory.
GBPNZD Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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