For eight months the GBP/NZD currency pair had not reached the current levels, and since January 17 every week the pair is recording new highs. Now the pair recorded its highest level in eight months at 1.8429.
After the aggressive downside wave from last May's highs till October's lows, the prices have been forming a correction upside wave and trading ahead of 38.2% Fibonacci. The pair is trading inside a price channel that started on January 16. It's possible that the pair will reach 38.2% in the next hours after we saw that the pair is trading above the key support area 1.7950. The moving average is still below the prices which support the positive outlook, but the RSI indicator is ahead of 90 levels which are considered an overbought area, which refers to the downside direction soon after reaching 38.2%.
The Next Few Days
Based on this analysis of the daily chart we can buy the pair now at 1.8400 after it is trading stably above its psychological levels and keep our first target at 1.8550, with a second one at 1.8700 in case the pair is still trading above the SMA50 on the daily chart.
This week is expected to be poor in news from the UK or New Zealand but be careful about any unusual news or events which do not exist in the calendar, especially after next week when we have the second round of the presidential elections in France.
