© Dukascopy Bank SA
GBP/NZD has just broken out of the triangle it has been forming since Tuesday to the downside. Accordingly, after a temporary upward correction from the 200-hour SMA, the selling pressure should resume, probably somewhere around 1.9639 (daily S1 and up-trend).
In this case a cluster of supports near 1.9596 should give in, thus allowing the price to dip down to the daily S3 at 1.9558. Then we will be looking at the Jul 14 low as the next potential target. And while the hourly technical indicators are in favour of such a course of events, in a longer-term perspective, namely in a daily time-frame, studies are largely against the rally.
© Dukascopy Bank SA