GBP/NZD Price Analysis: The dynamic support is critical

GBP/NZD has a compelling technical case for a downside extension.
Bears eyeing a break of dynamic support.

Ross J Burland FXStreet

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

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

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

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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