GBPNZD has moved south since September 2015. It is worth noting that in October last year market tested historic low, which was established in October 1976. There occurred demand response which resulted in price growth and pair reached level of 1.90, where in May this year a strong supply reaction occurred.
Looking at weekly chart, we will notice that the market has been moving for a long time in consolidation. It is worth noting, however, that as a result of the recent upward movement, market has crossed the downward trend line, which we then tested from above (as support).
Since the re-test of this trend line, pair is moving in a slightly narrower consolidation.
Looking on H1 chart, we note that the course from last Friday is moving slowly north. Taking into account the small dynamics of these increases, it seems that they are only a correction before next bearish impulse. Breaking Friday’s lows could open the way to declines even near the bottom of consolidation.
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