GBP/NZD hit lows at 1.7643 and those lows are located from today’s 1.7616 to 1.7653. Longs should be taken in this current area. Next above comes 1.7661 and a vital break to see next 1.7722. The 1.7700’s are wide open and this derives both from my daily and full Stat model. Above 1.7722, then next above is 1.7790. So a wide 68 pip range from 1.7722 to 1.7790.
Below, the base is now 1.7440 and next supports 1.7504 and 1.7598. Then begins 1.7616, 1.7653 and 1.7661. My current longs must break 1.7661 then its home free to 1.7722.
Overall, the big line break rose to 1.8115 and only a break of 1.8077 would see a run to 1.8115. Above 1.7790 then targets become 1.7820, 1.7823, 1.7830 and 1.7850. What is 1.7850 is a huge break to open 1.7927’s. Don’t look for 1.7850 to break today unless extraordinary circumstances hits the markets. We can view today;s overall range from 1.7616 to 1.7850. Its overall 234 pips but the average range is exactly 130 pips. GBP/NZD is a monster currency pair and not for new traders to consider.
Brian Twomey, Inside the Currency Market, btwomey.com