GBPNZD – Bullish again?
31st August 2017
GBPNZD is testing a key weekly level. The 21 week displaced moving average has a history being an excellent medium term trend indicator and the spot price is, currently, trading back above. This is backed up by a similar, potential, ‘golden’ cross in our RSI indicator.
GBPNZD gained more than 21 big figures from January’s low but almost exactly 76% of that rise was corrected with the fall to the June/July lows.
Those lows help create a trend of weekly higher lows that has since acted as a platform, coupled with the base of the Keltner channel, for a renewal of investor demand. GBPNZD has posted 4 positive weekly performances from the last five with this week’s gains likely to add to that bullishness.
Of course, NFPs will have an impact and the move above the averages is not, in itself, enough to confirm a medium term trend. However, a weekly close for GBPNZD above the spot average (1.7908) and the RSI average rate is likely to open up potential for 1.8135, 1.8274 or even 1.8472 in the coming weeks.
