- GBP/NZD struggles to extend gains above major resistance at 1.89 (falling trendline).
- The pair is extending upside from record lows at 1.6705 hit during November 2016.
- We have evidenced a 'Golden Cross' formation (bullish 50-DMA crossover on 200-DMA) on the daily charts.
- Breakout above major trendline resistance at 1.89 will see resumption of upside.
- On the monthly charts, we see Stochs have rolled over from oversold levels and RSI has bounced off from near oversold zone.
- Slight bearish divergence could see some downside in the pair. But we see downside limited.
- We see scope for test of 2.20 levels (May 2016 highs).
Support levels - 1.8467 (20-DMA) 1.8010 (50-DMA), 1.7687 (200-DMA),
Resistance levels - 1.89 (falling trendline), 2.0 (June & Sept 2013 and Aug 2014 highs), 2.20 (May 2016 high)
Recommendation: Good to go long on breakout above trendline resistance at 1.89, SL: 1.76, TP: 2.0/ 2.20
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -159.523 (Bearish), while Hourly NZD Spot Index was at -58.279 (Neutral) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
