GBPNZD Maintains Neutral-to-Bullish Bias Above Cloud

Technical analysis of Forex market

GBPNZD has been consolidating over the last four months with upper boundary the 2.0430 resistance and lower boundary the 50.0% Fibonacci retracement level of the up leg 1.8280 – 2.0550, near 1.9410. However, the broader picture remains positive as the price is hovering above the seven-month ascending trend line.

Turning the attention to the technical indicators, the RSI is sloping up after a bounce ahead of the 50 level, while the stochastic is turning slightly higher before it hit the 20 level. Currently, the price is flirting with the red Tenkan sen line, distancing itself from the 23.6% Fibo of 2.0017.

Traders, however, would be more eager to engage in buying activities towards the 2.0430 resistance. If this is successfully breached, then the rally may next rest somewhere near the 2.0550 barrier.

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Alternatively, a downside reversal below the 23.6% Fibo of 2.0017, then, the Ichimoku cloud and the 20- and 40-day simple moving averages (SMAs) at 1.9900 and 1.9815 could be the next levels to watch.  A steeper decline beneath the uptrend line could also reach the 38.2% Fibo of 1.9685, within the neutral zone.

Briefly, traders may be on hold until the price continues the positive momentum in the longer timeframe. A bullish action would come after a jump above 2.0430.