GBPNZD has been falling since reaching high 1.9640 in the second half of March this year. In the long run (at daily intervals), the current downward movement seems to be only a correction of the previous upward trend.
However, in the H4 chart, the low and high system indicates a short-term downward trend, where this week there was a breakdown of local support at 1.9336. One of the scenarios for a short-term is re-test of support at 1.9336 as a new resistance. If this test proves to be positive, the quotations may continue to the upward trend line running from the July 2017 low. In turn, in case of breaking the trend line running from this year’s maximum visible in the chart below, there is a chance for a return to increases in the direction of 1.9627, and then 1.9772 – 1.9830.
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