GBP/NZD: Bear Gets Ready to Make a Move

• GBP/NZD had a strong rejection at a significant horizontal resistance.
• The pair trades below the SMA 30 on the H4 chart.
• The H1 chart looks bearish breaking an up-trending trend line.
• Intraday minor charts have been choppy.

GBP/NZD- Technical Analysis- H4 Chart

The chart shows that the price had a rejection at 1.08230 and made a breakout at the simple moving average 30. Thus, the sellers may look to go short in the pair from the value areas. The level of 2.06450 may hold the price as a level of support. A breakout below that level may generate good bearish momentum and drive the price towards the downside.

On the contrary, if the price goes above the SMA 30’s resistance, the buyers may take over and push the price towards the upside. The level of 2.09350 may work as a resistance in that case.

Price Action Analysis- H1 Chart

The chart shows that the price was up-trending by obeying a trend line earlier. However, the price upon finding its resistance around 2.08250, produced a bearish inside bar and headed towards the South. The price had a bounce again at the trend line and made a bullish correction. The chart then produced a bearish reversal signal at a flipped resistance and made a breakout at the trend line. As of writing, the pair trades below the trend line making a bullish correction. The sellers may be very keen to go short again in the pair from the value areas. The level of 2.06330 may work as a support if the price heads towards the South.

On the contrary, the buyers must wait for the price to get bullish. It is to produce a bullish reversal pattern or a breach at the trend line again to offer long entries to the buyers.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn