The GBP/NZD has been in a pronounced downtrend since the mid of last month. After the recent bullish retracement, price now finds itself in an area of confluence. There is still space for more bearishness.
The POC zone is 1.8827-37 [D H3, 5/8, FR 50, Historical Order Block, ATR H1]. Retracement might end at this key resistance level for bears to take over. Our targets are 1.8770 [D L3, W L3, 3/8, FR 23.8] and subsequently 1.8707 [D L5, 1/8, Swing low]. 1.8640 W L4 level is possible if price closes strongly below the swing low.
Price should not close higher than 1.8920 [D H5, 8/8, FR 78.6, ATR Projection High] for this analysis to be valid.