Talking Points

  • GBPNZD clears resistance / 200DMA- Scalp bias bullish
  • Pair now at resistance- looking to buy dips while above 1.96
  • Major event risk tomorrow from the UK

GBPNZD Daily Chart

GBPNZD Scalps Target May Opening Range Break- Bullish Above 1.96

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • GBPNZD breaks above key resistance / May opening range high- bullish
  • Resistance objectives 1.9757, ~ 1.9840 (TL resistance) & 1.9895-1.9916
  • Support now at 1.9600/26, 1.9432/53- bullish invalidation
  • Daily RSI resistance trigger break dating back to 2013- bullish
  • Event Risk Ahead: UK 1Q GDP Tomorrow

GBPNZD Scalp Chart

GBPNZD Scalps Target May Opening Range Break- Bullish Above 1.96

Notes: The GBPNZD has posted an impressive rally off the May lows with the pair taking out key resistance & the monthly opening range this week. Interim resistance stands at 1.9757 which is defined by the 50% retracement of the descent off the 2014 high as well as the April high (1.9759) and a breach above this mark further validates our broader bias.

Intra-day RSI divergence at the highs and a clear support trigger in momentum has our immediate focus weighted to the downside against 1.9757 at the close of US trade. Bottom line: look to buy pullback’s in the pair heading into the close of the month while above the 1.9647/66 with only a break below the 1.96-handle invalidating our near-term directional bias. Follow the progress of this trade setup and more throughout the trading week with DailyFX on Demand.

* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.

Key Threshold Grid

Entry/Exit Targets



Technical Relevance

Bearish Invalidation

Daily / 30min


50% Retracement / April High

Break Target 1



Big Figure / 1.618% Fib Extension

Break Target 2

Daily / 30min


TL Resistance (Support Mirror)

Break Target 3



Soft Resistance / Pivot

Break Target 4

Daily / 30min

1.9895 – 1.9916

61.8% Retracement / 1.618% Ext

Support Target 1



Soft Support / NY Session Low

Bullish Invalidation

Daily / 30min


23.6% Retrace / 100% Ext / 100DMA

Break Target 1

Daily / 30min

1.9598 - 1.9609

38.2% Retracement / 200DMA

Break Target 2



38.2% Retracement

Break Target 3



50% Retracement

Break Target 4



61.8% Retracement

Break Target 5



Weekly ORL

Average True Range

Daily (20)


Profit Targets 32-35pips

*ORH: Opening Range High

*ORL: Opening Range Low

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

For updates on this scalp and more setups follow him on Twitter @MBForex

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