GBP/NZD At Decision Point

A few days ago this pair was analysed and we mentioned we were waiting for price to show a break out of the range and the 1.74400 support area for a shorting opportunity. Well we are currently still waiting, this is simply being patient for a potential opportunity. We are looking for a break retest of the 1.74400 support area for a shorting opportunity down to the 1.67430 support area.

If this pans out then we could short this market with a tight stop above support turned resistance and go for the 1.67430 area. The Pound is not looking very healthy recently and this could be a reason for market participants to stay away from the currency until more clear perspective is seen.

On the other hand, a rebound from current support would invalidate the shorting opportunity and lay the way for a bull target at 1.8279.

Chart: GBP/NZD D1