After the breakout of the uptrend trend line, GBP/NZD reached
the downside target at the 2.0560 level (S2), which is 0% Fibonacci applied to the
trend line’s breakout point. The following corrective move up was pretty sharp and
resulted in the breakout of both Fib resistance levels, 23.6% and 38.2%.
Last week, the price corrected down to form a double bottom near the 2.0600 area and started to move higher once again. Currently, the 23.6% Fibs (S1)
is acting as support and could be the starting point for the next wave up.
Consider buying GBP/NZD on small pullbacks towards S1 to
target either R2 (2.1030) or R3 (2.1140) areas. The stop loss should be just
Support: 2.0560, 2.0600, 2.0780
Resistance: 2.0920, 2.1030, 2.1140
The material has been provided by InstaForex Company – www.instaforex.com