GBP/NZD 1H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Although the outlook for GBP/NZD is bearish, because of the downward-sloping channel, there are two major support levels the pair is currently facing that are capable of turning the trend around. This may explain why only one out of four traders is short the Sterling. The nearest potential floor is at 1.94, represented by the March lows, followed by a cluster of supports around 1.9250. Here demand is implied by the weekly S1, January minimum, and the down-trend. Accordingly, both these obstacles must be overcome in order for GBP/NZD to confirm its bearish intentions, while at the same time supply at 1.97 (down-trend, weekly R1, 200-hour SMA) needs to remain intact.
© Dukascopy Bank SA
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