GBPNZD – Since the maximum level of 2.0018 this year was set on May 8th, the pair has been moving quite dynamically in a downward trend. Monday’s daily candle has taken the form of a “spool”, which indicates a balance between supply and demand. The Monday 1.8380 candle minimum is at the same time the minimum of this year and is in the demand zone created in December 2018.
Looking at chart H4, we can see that an bullish divergence has formed and the price is heading north. The likely demand target will be level 1.8510, where the nearest local supply zone is located, and after successfully overcoming it the level of support/resistance 1.8600.
When planning an order for this pair, pay attention to Tuesday’s events of the day (12:45 GMT+2 , which will be the designation of Boris Johnson as Prime Minister of the UK. This may have a strong impact on the British pound’s price, GBP will probably get stronger and, as I expect, the pair will make a move upwards.
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