Now, it is obvious that GBP/NZD has been trending up since new higher lows and higher highs were reached. The pair started to move within an ascending channel on May 14, which has been broken after an upside rally May 21.
The Fibonaccy levels applied to the breakout point show that the pair is testing significant support near S1 (2.1329) which is the breaking point of our ascending channel (50% Fibs). This level acted as resistance previously. Now, the pair is rejecting it for the third time. At the same time, the price has almost touched a 200-day moving average which is also acting as support and confirms the validity of an uptrend.
Consider buying GBP/NZD at the current level targeting 0% Fibonacci level – R3 (2.1753). Only a daily close below 2.1300 could push the pair slightly lower, but should not change the main upward direction.
Support: 2.1329, 2.1228
Resistance: 2.1429, 2.1553,
The material has been provided by InstaForex Company – www.instaforex.com