Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

GBP/NZD: sell target - 2.3270

By: Dmitriy Chernovolov

  • GBP/NZD reversed from strong resistance level 2.4000
  • Next sell target - 2.3270

GBP/NZD continues to decline after the recent downward reversal from the strong resistance level 2.4000 (which has been reversing the pair from the middle of July – stopping the previous waves (3),1 b (a), as you can see below). The latest downward reversal from the resistance level 2.4000 created the daily Japanese candlesticks reversal pattern Bearish Engulfing – starting the active minor corrective wave (b).

With the clear bearish divergence visible of the daily RSI indicator, GBP/NZD is expected to fall further toward the next sell target at the support level 2.3270.

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