The last time we discussed the GBP/NZD we recommended selling the pair after it settles down below the SMA50, and we saw the bears extended the loss toward 1.7039. It hit our target at 1.7444 and 1.7300 which was our second one - in just two days we won more than 200 pips.
Today we’ll analyze the pair on a daily time frame chart. It is trading now at 1.7130 between buyers and sellers and we saw this area before was a key support for the pair in the second half of last Octobe. We’ll still watch where the pair will go in the coming days, because till now no clear signal to trade was given.
In case the pair is still trading below 1.7130 and is confirmed close below it, we can see the pair's further target at 1.6756 and we can sell it again especially after the bearish engulfing candle.
The RSI and stochastic indicators are still giving us sell signals and no buy ones yet.
The Next Few Days
We can sell the pair when we see it close 2 H4 candles or a daily candle below 1.7130 and make our first target at 1.6950. If the pair breaks it we have to sell it again to 1.6760.
We have to pay attention to the upcoming hot news like the CPI, Retail Sales and average earning index next week from the United Kingdom and GDT price index from New Zealand.
