In our recent report about the GBP/NZD currency pair I mentioned that the pair has reached the key supply area and has closed above the key area 1.7383 which we have to focus on because the pair has formed 6 tops at this area in the past two months.
Last week the pair formed the bearish engulfing candle we were awaiting. After that it declined to 1.7230 and climbed back to retest the supply area again; now it is trading at 1.7187 so, we have +140 pips till now and are waiting for more.
Now we can keep our profit and open short positions again after breaking the short-term support area at 1.7199. We can make our target at the upside trend line. The Stochastic indicator is below the 20 level so the pair might rise in the next few hours. The RSI is ahead of 10 level.
Ideally, we would like to see a close below 1.7200 on a 4-hour closing basis - this area has been a factor on the intraday charts since last week.
The Next Few Days
If you read our last report about the pair and sold it at 1.7338 after the engulfing bearish candle and after breaking the SMA 50, you can close your order now with +140 pips profit and wait for the pair to close a candle below 1.7199 to sell it again and keep our target at 1.6990.
We have to be careful about the upcoming hot news like the Manufacturing, Construction and Services PMI on Wednesday, Thursday and Friday from the UK.
