The sentiment among traders has turned bearish for three major currency pairs: GBPUSD, AUDNZD, and GBPNZD. The market dynamics surrounding these pairs indicate a downward trend in their respective exchange rates. In this article, we will dive into the factors contributing to this negative outlook.

The AUDNZD Performance 

(UPDATE) - AUDNZD bearish continuation developing.

AUDNZD is still showing strength to the downside as recently the market created a lower high at the resistance zone around 1.07487. This price resulted in the formation of the right shoulder of a possible head and shoulders formation. According to this price action and structure, traders are bearish and anticipate the market to break below the support and continue the bearish trend with targets set on the -2.72 fib extension level.

The GBPUSD Performance

GBPUSD creating lower highs.

GBPUSD recently bounced from the top of the ascending structure and broke below the structure which provides traders with signs of a possible bearish run. The weekly support zone around 1.24435 is still holding, however, with lower highs developing, traders anticipate a break below the support zone and a continuation of the downtrend. This price action could see GBPUSD dropping to the -61.8 fib extension level.

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The GBPNZD Performance

GBPNZD starting a downtrend.

GBPNZD aggressively rejected the monthly timeframe resistance zone around 2.02520 and created a bearish impulse wave. This caused the market to break below the ascending channel and provide indications of a shift in momentum and a possible start of a bearish trend (reversal). According to this price action, traders anticipate a drop and a new lower low to develop.

Final thoughts on today’s analysis 

Traders are also bearish on GBPNZD, the exchange rate between the British pound and the New Zealand dollar. Similar to the factors affecting GBPUSD and AUDNZD, concerns over the British economy, including Brexit-related uncertainties, have weighed on the pound. 

At the same time, the New Zealand dollar has enjoyed positive economic momentum, driven by strong agricultural exports and a well-managed COVID-19 response. As a result, GBPNZD has experienced downward pressure. Subscribe to our YouTube channel to get more market commentary.