Steadily Declining GBP/NZD Facing Resistance

Last updated 10/22/2009 2:20 PM EST (GMT -5) 2 Comments

FX360 Technical Analyst Staff

Technical Analyst, GFT

Having seen a steady and relatively sharp decline this past quarter, the GBP/NZD seems to be headed even lower with forecasts suggesting further NZD strength. Although October has seen a small recovery with prices now testing longer-term bear trendline resistance (see daily chart), prices currently test the first of three key levels of resistance each of which present solid selling opportunities. From a geometric pattern recognition perspective the most attractive sell entry would be off an emerging 30min bearish butterfly patter projected to complete up near 2.2244-2.2264, but prices may already be ready to drop in accordance with longer-term bear trendline resistance as they currently also face near-term 61.8% resistance (R1 on 30min below).

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Comments (2)

Junior

October 22, 2009 at 05:00 PM ET

The GBPAUD seems to be following a very similar pattern, do you think the same fits for the AUD?

rstojsic

October 23, 2009 at 08:28 AM ET

yes, although the GBPNZD will likely out pace the GBPAUD

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