General overview: – By looking at the daily along with hourly chart we can see that the pair hits the lows highs in the market and bears have given us mind blowing counter attack. The GBP/NZD is trading below the breakout of the downtrend line which we have received recently. The pair makes the negative momentum in the chart and creates the negative move in the market. A Shooting Star below the downtrend line is providing us bearish signal and we are expecting to move further downside also, pair received a strong demand pressure from the 200 SMA line which is favoring the bears. A short-term downtrend line is also favoring the bears.
Technical overview: –From the technical point of view we can say that a rounding top pattern is process of formation wherebears are dominating the bears and recently it has given us Shooting Star candlestick which is posted on daily chart and favoring the bears. The price holds below moving averages, that are finally widening their range. The RSI turned up from the overbought territory which means that the correction is over and it’s time to sell it again. So, it’s better to sit on the sell side in the market. The minor EMA lines will travel below the major SMA lines as they created the sell signals in the market. The support of the level is 2.0924 followed by 2.0783 and resistance is 2.1167 followed by 2.1211.
Trade idea: –We can say traders can go for sell at level 2.1070 target will be 2.1020 and 2.0980 and stop loss is 2.1130.
