GBPNZD’s improving picture has found support from the 50- and 100-day simple moving averages (SMAs) slightly above the Ichimoku cloud and the tentative uptrend line. The pair is currently trading around the 2.0374 level, which is the 38.2% Fibonacci retracement of the up leg from 1.8276 to 2.1675. Moreover, the flattened Ichimoku lines reflect a stall in positive directional momentum.
That said, the RSI has risen to its neutral mark while the MACD, in the positive region, is declining below its red trigger line. Noteworthy is the upward slopes in all the SMAs and the bullish crossover in the oversold territory between the stochastic lines, suggesting more advances may unfold.
Moving above the 38.2% Fibo of 2.0374, buyers primarily could face the 2.0678 and 2.0763 nearby highs ahead of the 23.6% Fibo of 2.0874, captured by the Ichimoku lines. Overrunning these obstacles, the pair may encounter some pressure at the 2.1196 June 2016 swing high before retesting the multi-year top of 2.1675. Conquering this, the peak of 2.2000 from back in May of 2016 could come into focus.
Moving down, initial support may come from the 50-day SMA at 2.0173 and the 100-day SMA – residing at the upper band of the Ichimoku cloud – at 2.0073. Marginally below, a key area from the tentative uptrend line to the lower band of the cloud, which also encompasses the 50.0% Fibo of 1.9973, could halt additional declines towards the 1.9760 low and the 200-day SMA and 76.4% Fibo at 1.9653 and 1.9573 respectively.
Overall, a short- and medium-term improving picture exists above the 1.9973 trough.
