GBP/NZD is a way way overbought currency pair. GBP/NZD rose from 2.2900’s to now low 2.3700’s. Ranges are extraordinarily wide in GBP/NZD. Shorts are most definately the way.
First top to look to sell is 2.3721 and 2.3756. Those points may not be seen. Top of the range is located at 2.3798. Bottom range break is found at 1.3599.
Short targets are found at 2.3635, 2.3629 then 2.3599, 2.3591, 2.3590, 2.3496, 2.3462, 2.3427, 2.3419, Points are many because I had to look at both the GBP and NZD sides due to the wide ranges.
Points on the way down. 2.3756, 2.3721 then 2.3716, 2.3709, 2.3708, 2.3707, 2.3702, 2.3698. Then begin to look for targets at 2.3635 and 2.3629 first. Overall, big breaks to change GBP/NZD short with any confidence is located back at 2.2900’s. Its the GBP side that has held this pair to reach such extreme prices. And again from last quarter it was the wage data. So also look at GBP/USD. To see GBP/USD shorts gain speed then breaks must be seen at 1.5471 and 1.5353. If both areas break for GBP/USD then GBP/NZD also gains downside speed.
Brian Twomey Inside the Currency Market, btwomey.com