After the breakout of the uptrend trend line, the price dropped
substantially and the pair found the support at 0% (S2) Fibonacci level applied to
the trend line’s breakout point. At the same time, a strong support is formed at the
361.8% (S1) Fibs applied to the first corrective wave after the trend line’s breakout.
All in all, the price does not look like moving lower the strong
support area between 2.0550 and 2.0650, which could lead to a correctional move
Consider buying GBP/NZD on small pullbacks towards S1
(2.0650) targeting one of the resistance levels with the R4 (2.1140) area being
the final target. Ideally the stop loss should be just below S2 (2.0550) but
with more aggressive trading it could be also placed below S1 (2.0650).
Resistance: 2.0780, 2.0920, 2.1030, 2.1140
The material has been provided by InstaForex Company – www.instaforex.com