Technical Analysis – GBPNZD heads for the 2020 top
August 17, 2023 9:28 am
GBPNZD brought the pandemic’s four-year high of 2.167 back under the limelight after an impressive performance over the past six months.
The ongoing bullish run, which snapped the 50% Fibonacci retracement of the 2015-2016 freefall last week, shows no signs of weakness in the weekly chart. Hence, buyers could stay active in the market, though some profit taking cannot be ruled out as the price is a short distance below its 2020 top. Moreover, the stochastic oscillator has reached its previous highs in the overbought zone, while the RSI has touched its highest level since July 2015.
If the 2020 ceiling of 2.167 gives way, the focus will immediately turn to the 61.8% Fibonacci of 2.200, where upside pressures evaporated in May 2022. The 2.230-2.240 zone could be the next hurdle.
On the downside, the 50% Fibonacci of 2.100 could be on guard to prevent any declines towards the 20-weekly simple moving average (SMA) and the ascending trendline at 2.050. Interestingly, this is where the price stalled in January 2022. Therefore, the bears would aim for a clear close below that base with scope to sink the price towards the 2.00 psychological mark and the 38.2% Fibonacci of 1.997.
All in all, the uptrend in GBPNZD is well established, but the odds of a negative reversal are increasing as the price is quickly approaching its 2020 peak.
GBPNZD brought the pandemic’s four-year high of 2.167 back under the limelight after an impressive performance over the past six months.
The ongoing bullish run, which snapped the 50% Fibonacci retracement of the 2015-2016 freefall last week, shows no signs of weakness in the weekly chart. Hence, buyers could stay active in the market, though some profit taking cannot be ruled out as the price is a short distance below its 2020 top. Moreover, the stochastic oscillator has reached its previous highs in the overbought zone, while the RSI has touched its highest level since July 2015.
If the 2020 ceiling of 2.167 gives way, the focus will immediately turn to the 61.8% Fibonacci of 2.200, where upside pressures evaporated in May 2022. The 2.230-2.240 zone could be the next hurdle.
On the downside, the 50% Fibonacci of 2.100 could be on guard to prevent any declines towards the 20-weekly simple moving average (SMA) and the ascending trendline at 2.050. Interestingly, this is where the price stalled in January 2022. Therefore, the bears would aim for a clear close below that base with scope to sink the price towards the 2.00 psychological mark and the 38.2% Fibonacci of 1.997.
All in all, the uptrend in GBPNZD is well established, but the odds of a negative reversal are increasing as the price is quickly approaching its 2020 peak.
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