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In my last GBPNZD post on June 19th, I wrote about two key levels that would play a role this month.
The first was 1.9400 resistance, and the second was 1.9000 support.
At the time of that post, GBPNZD had just broken below the 1.9400 level, so it was logical to assume that area would attract sellers.
Sure enough, it did just that between the 24th and 25th of June.
We also saw GBPNZD bounce from that 1.9000 support area.
However, as I told members at the end of the June 19th video, I expected channel support near 1.9000 to fail eventually.
That brings us to today’s price action.
As you can see from the chart below, GBPNZD is once again pressuring the 1.9000 region.
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But can it close the day below that area?
To be more specific, I would put the bottom of that channel closer to 1.9070.
If sellers can break that area, there isn’t much to prevent a run at 1.8280.
That’s especially true when we view the price action over the last few years.
Even a look at the last twenty years shows GBPNZD in a massive downtrend.
All of this leaves me relatively bearish on GBPNZD.
However, sellers still need to close the pair below that 1.9070 area on a daily and weekly closing basis to trigger the next leg lower.
Key support, as mentioned above, comes in at 1.8280.