Technical analysis of GBP/NZD 03.05.2013
GBP/ NZD form 2000 till now was in a strong and coherent descending trend that sellers strictly followed their descending price targets. Price during the recent downtrend was able to record the bottom price of 1.76933 and it is fixed by the ascending candles. The mentioned bottom price is the lowest price in the history of this currency pair and generally the price is in a saturation sell area. In monthly time frame of this currency pair, there is a hammer candle stick pattern that warns about the potential for formation of a bottom price and ascending of the price for buyers. According to the formed movements in the price chart, between the top price of 2.25137 and the bottom price of 1.76933 there is an AB=CD harmonic pattern with ratios of 61.8 and 127.2 that by completing the ending point of this pattern, there will be a warning for ascending trend.
As it is obvious in the picture below, the price reacts by coming across the supportive line and prepared a field for price reformation by creating the bottom price of 1.76933. RSI indicator in weekly time frame is in saturation sell area (also in divergence mode with the price chart) that confirms the mentioned bottom price by the next cycle and warns about the potential of changing price direction. Breaking the resistance level of 1.83843 is a good warning for ascending of the price. Generally according to the formed signs in this price chart, until the bottom price of 1.76933 is preserved, there will be the potential for ascending and price reformation in this currency pair.
FxGlory
2013.05.03