Would you buy it?
The GBPNZD is the strongest currency pair in trading today.
Taking a snapshot of the % changes of the major currencies vs each other, that pair has a change of 1.40%
Do you buy it?
Let's see what the technical's are saying?
Looking at the daily chart above, the pair moved below the low from February (and the calendar year) at 2.0618 on Friday. This was also the lowest level going back to May 8th, 2015. So nearly a year ago. The low price extended to 2.05567.
Today, the price low cane in at 2.0601 but could not remain below the February low, and the move higher began.
The failed break is a bullish sign.
Drilling down and looking at the hourly chart, the surge higher today has taken the pair above the 100 hour MA at 2.0781 currently and above the 38.2% retracement of the move down from last week at the 2.08071. Those levels are risk for longs looking for more now. Stay above and the buyers are in control.
The hurdle is the yellow area in the chart below. This area has a number of swing lows going back to March 8. This is the first look at that old floor level and it seems to have slowed the move higher (for now at least).
SO great move today. The GBPNZD wins the award for the biggest mover. The price is at resistance. It might be wise to wait for a retracement toward the 2.0800 area (38.2%) to get in (stop below the 100 hour MA at 2.0781). Either that or go with a break above 2.0907 and look for further upside momentum toward the next upside targets. (risk would be a move back below the yellow area).
If there is a break above that yellow area, the 200 hour MA at 2.09418 (green line in the chart below) will also need to be broken. The road can be rocky, but the road higher may have begun.
