Looking at the weekly trading chart of GBP/NZD it can be observed that the pair is consolidating for long and is also range bound, which signifies that in whichever direction the breakout is going to be in a sharp move can be expected. This picture becomes clearer as we look into daily chart. GBP/NZD is trading in a rising wedge pattern facing strong resistance at upper levels of 1.99936 (around) signalling selling pressure. Levels of 1.96417(around) are providing as a support zone for the pair and they are being retested many times. RSI being below 50 is also indicating pressure of bears for the pair, however MACD is still in its positive crossover.

Considering the strong resistance faced by the GBP/NZD at the 1.99936 levels also the support levels being retested many times, a trade on sell side can be taken once a breakout is given. EMA 50 and RSI are also providing selling signals. The downtrend is still not that clear so the entry can be made in upcoming trading sessions. For a short position wait for GBP/NZD to break its support level of 1.96417 with a retest, then a position can be made targeting 1.90477 levels while keeping stoploss at 1.97142

GBP/NZD

Aug 24 2021

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