- GBP/NZD has a compelling technical case for a downside extension.
- Bears eyeing a break of dynamic support.
In a prior and recent analysis, GBP/NZD Price Analysis: Bears seek an extension to 1.8580, GBP/NZD was grinding higher for a 38.2% correction on the daily chart.
Prior analysis
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In the above daily chart, the price was forecasted to complete at least a 38.2% Fibonacci retracement of the M-formation’s bearish impulse.
Current market
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At this juncture, the pair can firmly be on the bear’s watchlist for a prolonged deceleration of the correction as the price meets a confluence of the 38.2% Fibo, structure and the 10-day moving average.
While higher grounds are still not out of the question, a downside extension would be expected to reach in the region of at least 1.8580 as a measured Fibonacci target.
4-hour chart
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The 4-hour chart offers a bearish environment with MACD below zero.
The price now needs to break out below the 10-moving average and the rising trendline support that would be expected to act as resistance on a subsequent restest of the structure.