GBP/NZD 4H Chart: Channel Down

Two months ago GBP/NZD made an attempt to rally, but the advancement was halted at 2.0437 and the pair came under selling pressure. And even though the currency paired tried to stabilise near 1.97, the bears continued to push the price lower; and the decline may be classified as a bearish channel. This will be confirmed if the Sterling manages to find enough support at 1.8988 and subsequently reaches the upper boundary of the corridor near 1.98, which is also the current location of the 200-period SMA. The SWFX market participants, however, are strongly convinced that GBP/NZD is bound to move north—71% of positions are long and 29% of them are short .