STERLING GBP/NZD, GBP/JPY, GBP/USD – KEY POINTS:
- GBP/NZD might give the gained ground as the prices fail to challenge the trends defining the 50-Moving Average.
- GBP/JPY set to further extend gains after it sliced above the Schiff Pitchfork median resistance
- GBP/USD trying to nudge to new yearly peaks as the prices continue to hurdle the key resistance
The Sterling Pound seems set to gain some ground against the haven linked peers in the short term after it cleared the key technical levels. Nevertheless, the currency might surrender the gained trends against New Zealand, which is cyclically sensitive. Following are some of the key levels to look out for GBP/NZD, GBP/JPY, and GBP/USD rates.
The GBP/USD exchange rate continues grappling with the key resistance at 1.3665 (May 2018 peak) after it stormed away from the confluent support trading at 1.3515 (2019 high) and the 21-day exponential Moving Average (EMA).
The bullish MA stacking, in line with both MACD and RSI indicators, tracked strongly over their respective mid-levels, propose that the least resistance path is higher.
The daily close over 1.3670 is without a doubt required to further neutralize the short term selling pressure and model the path for the price to challenge 1.3782 (78.6% Fibonacci). Clearing this brings a psychologically imposing 1.4000 level into focus.
On the other hand, the rebound towards the 8-day Exponential Moving Average might be on the offing incase the resistance at May 2018 peak remain intact, with a very convincing break under 1.3600 possibly opening doors for the sellers to help drive the process back to 1.3515.
The GBP/JPY rate seems set to extend the latest gains, as prices slice via the Pitchfork median line and 8th January peak at 141.38 as Nasdaq 100 Pullback With Falling US Dollar.
After the Relative Strength Index breached the downside trend extending from the November peak, a highly extended upside trend nudge might be on the cards.
Still perched constructively over the 141.50 mark and Pitchfork median likely creates a wave for sellers to drive this exchange rate to 142.70 (the September high). The daily close over that should bring 144.96 (2020 high) into crosshairs.
On the other hand, the daily close below 141.50 might activate a rebound to confluent support at November peak (140.31) and 21-EMA.
The GBP/NZD seems set to claw back some of the lost ground, as traders pushed the rate back to 34-EMA and Schiff Pitchfork median.
The MACD indicator bullish crossover and the RSI nudging back over 50, which is the first time to do so back in October, is a sign of ballooning a bullish momentum.
However, after it gained a strong foothold over 1.9024 (78.6% Fibonacci) will possibly open doors for the prices to test a 100-Moving Average and former support that turned resistance at 1.9324 (October 2020 low).
Also, failure to break out the 78.6% Fibonacci might activate a reversal back to 1.8897 (November 2020 low).