If we look at the 4-hour chart, the GBP/NZD cross currency pair appears to be above its 50 MA plus the appearance of hidden deviations between GBP/NZD price movements which form a higher - low while the Stochastic indicator actually forms a Lower Low which means Buyers still dominate the pair. However, with the current condition of the Stochastic indicator being above the Overbought level (80), which has also now started to cross downwards and is preparing to penetrate below the 80 level, in the near future GBP/NZD has the potential to be corrected to weaken down to level 2.0985, however, as long as the weakening correction does not penetrate below level 2.0855, GBP/NZD still has the potential to strengthen again to level 2.1184 as the main target and if momentum and volatility support then level 2.1274 will be the next target to be aimed at.
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