GBPNZD has been in a downtrend since the May 11 high of 1.8958 and prices have been falling in a descending channel to reach a low of 1.7438 last week.

Immediate support levels can be found at the June 14 low of 1.7438, followed by 1.7140 (March 1) and then at an important swing low at 1.6827.

A break above the 200-day moving average and a sustained move above the range high of 1.7766 (June 12) would target resistance provided by the base of the Ichimoku cloud at 1.8008.

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The technical indicators are bearish, with oscillators like the RSI below 50 and MACD below zero. The market does not look like it can push any higher in the near term as prices are capped by the 200-day moving average at 1.7685.

Other technical studies are pointing to a bearish picture, as the market trades below the daily Ichimoku cloud. The tenkan-sen crossed below the kijun-sen line in May, giving a bearish signal and keeping the bias to the downside.

In the near-term, it appears prices are consolidating just below the 200-day moving average but the bias is skewed to the downside in the short-term. Looking at the bigger picture, there is no clear trend in the medium-term. Only a rise back above the cloud at 1.8580 would give a more bullish outlook.


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