- GBP/NZD drifts lower along major resistance currently at 1.8885 (falling trendline).
- Breakout above major trendline resistance could see resumption of upside.
- The Pound has edges higher after drop in UK ILO unemployment rate which was better than forecasts for an unchanged reading.
- The pair is extending upside from record lows at 1.6705 hit during November 2016. Scope for test of 2.20 levels (May 2016 highs).
- We have evidenced a 'Golden Cross' formation (bullish 50-DMA crossover on 200-DMA) on the daily charts.
- 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.
- Weakness only on close below 20-DMA at 1.8651.
Support levels - 1.8651 (20-DMA) 1.8137 (50-DMA), 1.7823 (April 14 low),
Resistance levels - 1.8885 (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, SL: 1.76, TP: 2.0/ 2.20
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 77.0944 (Slightly bullish), while Hourly NZD Spot Index was at -80.095 (Bearish) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
