GBP/NZD short. Fibonacci extension and previous resitance target

16 Ara 2015

After we saw GBP/NZD peak we have seen price continue to fall and follow a descending trend line as seen in the chart. price found support at the top blue zone (2.3468-2.33357) during the late stages of its bullish trend this level turned resistance after it was broken. price continued to fall and found further support at the lower blue zone (2.2581-2.2410) price finally broke this level, rejecting a double bottom. after price bounced of the descending trend line for the second time this aligned with the 50-60% Fibonacci retracement level, our next downside target for GBP/NZD is 2.1098-2.0744 (green zone) which aligns with the 176.50% fib extension as well as this level being previous historical resistance.