The GBP/NZD was falling last week, continuing the declines from the previous 5 weeks. As can be seen in the weekly chart below, the pair remained at the broken trend line running from this year’s lows and beat support at the key level of 1.9066.
The sell-off was so strong that it sent quotations to around 1.8607, where is the minimum from January this year. Keeping quotations at the closures of the day this week would give a chance to recover from strong declines.
With the above scenario, the nearest resistance will be found in the vicinity of 1.9066. This level was previously a support, and after the breakthrough can be a resistance. Above it is the broken trend line and until the seller manages to keep quotes under it, the attitude on this pair remains bearish.
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In the case of trading in pairs with pound sterling, it is worth considering the volatility jumps, which have recently become commonplace bread in connection with the ongoing negotiations on the Brexit agreement.
