GBP/NZD Sets New All Time Low

|

By: DailyForex.com

From what I can tell, the GBP/NZD is trading at a lower price than ever before. The previous all time low was at 1.85439 and was set in August 2011. Yesterday, the pair broke this level, and most astonishing to this trader is that it stayed there! Quite often when a pair reaches an extreme it will reverse after establishing a new high or low, but so far it has not. However, it did make several attempts to break support at 1.8488 in the past week and so it is quite fitting that after so much effort by the bears, that they would not allow their reward to diminish so quickly. So we are in uncharted territory, literally. All we have now to rely on as far as Support & Resistance are basically Fibo extensions, and calculated pivot points. The pair is actually sitting on the Weekly S2 at time of writing, which is at 1.8310. Below here we have a Monthly S2 and Weekly S3 in close proximity to each other, 1.8177 & 1.8133 respectively. A reversal by the bulls will now bring the 1.8488 area into play as very strong resistance with the Monthly S1 at 1.8536 and a Weekly S1 at 1.8596 both acting now as resistance. Considering the overall weakening of the pound, and the reluctance by the Kiwi to follow suit, this pair could do some serious damage to anyone long at the moment.

GBPNZD Monthly 21413

Happy Trading!

Colin Jessup is certified in both Securities & Technical Analysis from the Canadian Securities Institute, founder of Omegatrader Canada and a Live Trading Coach at TheTradingCanuck.com, a service that calls live trades to captures dozens of pips daily with low drawdown.