GBPNZD has been gaining strength by the New Zealand Dollars weakness over the past 3 days after having its correction completed and continued its move with a bearish impulse down the line while the pound on the other side has been taking advantage of the situation. The pair failed to break 1.96000 support which has become a strong ground for reversal multiple times. 

EMA50 played key role in upholding GBPNZD above 1.97000 while the 61.8 Fibb has shifted its leg onto the same side of the table, preventing the pair from landing into the bearish momentum. EMA50 and 61.8Fibb levels are one of the key indicators of the market which tells if there is going to be a strong reversal in terms of the trend continuation. The trend is very prominent bullish on the pair and has already broken above our upper trend line and daily price action highs with now mingling against the resistance at 1.98000 - which tends to be another major resistance and key price for the pair to break for further bullish movement. 

Our wave count suggests that the pair has stepped out of the corrective tone and is entering into the first impuslive wave out of 5, with the first minor reversal wave being expected and focusing on the continuation of hawkish move. 1.19900 will be our target destination after which a pull back can be witnessed, but the current price actions suggest that GBPNZD will keep its tone high untill the completion of 5 wave structure. 

As long as the New Zealand dollar stays weak, Pound will keep on testing its thrash hold, a reversal in kiwi should be considered as a reversal in GBPNZD as well for their is a prominent connection between the two for being cross current in nature, but do not tend to ignore the wave count - for a better entry level, one must focus on the formation of impulsive and corrective structure with a fractal confirmation from the technicals. 

Bristish Pound/New Zealand Dollar Hawkish Impulse Initiation

Jul 08 2021

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