© Dukascopy Bank SA
As the support at 1.9371 successfully fought off the bears on several occasions in June and July, in the end they gave in and allowed GBP/NZD to rally. Right now the currency pair is trading near the lower edge of the pattern at 1.9745, which is reinforced by the Aug 1 low. Accordingly, there is a high probability of the Pound starting to negate the recent losses, which were made during the last three trading days. However, the hourly and especially the four-hour technical indicators beg to differ—most of them are currently pointing South. And the traders seem to be undecided—47% expect the Sterling to appreciate and 53% think otherwise.
© Dukascopy Bank SA