The week has started the with a strong Dollar and on Tuesday we have important bearish signals in both NZD/USD and GBP/USD. Both pairs have broken out of important medium-term bullish channels and have stopped making higher highs and higher lows.
NZD/USD
NZD/USD has broken below the key support of 0.7150-0.7120 as we mentioned in previous analysis. This has provided a bearish signal that implies a move towards 0.69 is imminent. Price has broken out of the bullish channel and we now expect price to make a corrective pull back in order to retrace the entire upward move from March 2020. Our first target remains at 0.69 and next at 0.66. Key resistance is now at 0.7240.
GBP/USD
The British Pound is breaking to new short-term lows as price is trading at 1.3780 having broken below the support of 1.38. The entire upward move since March 2020 is most probably complete and we should see at least a retracement of this move. Our first target is at 1.35-1.3450 and our second target is at 1.32-1.31. Resistance is now found at 1.40 and as long as price is below this level we are bearish.
