GBPNZD looks to be in the process of pushing higher to re-test the fresh multi-year high of 2.0557. The pair seems to have taken a breather consolidating along the 2.0020 level.
The short-term oscillators reflect a pause in the market but imply some improvement in positive momentum. The RSI is pointing up mid-way in the bullish territory. Additionally, the MACD, although currently below its red trigger line in the positive zone, is looking to climb back above it. Moreover, the 20- and 50-day simple moving averages (SMAs) still concur with the bullish outlook.
If buying orders continue to build up, the 2.0345 resistance level will be the first obstacle to restrict the efforts of the bulls. Overcoming this, the October high of 2.0467 could provide some downside pressure before the multi-year peak of 2.0557. Climbing higher, the 2.0690 resistance level may draw traders’ attention – which is the 138.2% Fibonacci extension of the down leg from 2.0020 to 1.8275 – before a stretch to the 161.8% Fibo extension of 2.1093.
A downwards scenario would need sellers to slip below the 20-day SMA, presently at 2.0190 ahead of the support of 2.0020, which happens to be the 23.6% Fibonacci retracement of the up leg from 1.8275 to 2.0557 and the high of May. Dropping lower, the 50-day SMA around 1.9850 could apply some upside pressure before the 38.2% Fibo of 1.9684. Further declines could send the price to the 50.0% Fibo of 1.9414 and nearby swing low of 1.9310, where the 200-day SMA also resides.
Overall, a neutral-to-positive bias exists in the short-term and a break above 2.0557 would reinforce the positive sentiment.
