Today I wanted to draw your attention to the GBPNZD cross pair, which has sparked up much conversation in our Forex War Room chat. The market is started to recover from a lengthy downtrend, the bearish momentum recently died off and caused the market to consolidate for a few weeks.
A resistance level which was containing price was breached last week as the market exploded into higher prices. This has given us a bearish bias on this market now and we're now looking for opportunities to get in long. Specifically, we are looking for a bearish correction to occur and weaken prices into an old resistance level. It's critical this level act as support if this market has any chance of developing in an uptrend.
Strong buying activity at this key level will confirm it is holding as support, and the market is gearing up for further upward movement. We will take no action unless a bullish price action signal forms, which will be the 'trigger' to go long.