- GBP/NZD has been bearish on the H4 chart.
- The pair is having a bullish correction.
- The H1 chart finds a horizontal support.
- Intraday price action has been bearish.
GBP/NZD- Technical Analysis-H4 Chart
The chart shows that the price has been bearish for a long time on the H4 chart. The simple moving average 30 has been its resistance. As of writing, the pair is having consolidation. The sellers may wait for the price to produce a bearish reversal candle to go short in the pair. The price may find its next support around 2.00000. The sellers may particularly keep their eyes on the price action around 2.04100. If the level produces a bearish reversal pattern, it may attract many sellers to go short in the pair since it is going to work as a flipped resistance.
On the upside, if the pair makes a bullish breakout at the SMA30 and confirm s the breakout, the buyers may go long upon having bullish reversal pattern at the value areas. The pair may find its resistance around 2.07325.
Price Action Analysis- H1 Chart
The chart shows that the price has had its second bounce at 2.02800. Upon producing a bullish Marubozu candle, the price has been heading towards the North. If the price goes above 2.03350, the buyers may push the price towards the North. A double bottom followed by a neckline breakout may generate good momentum and attract more buyers here. The price may find its resistance around 2.04100.
On the downside, if the price goes below 2.02800, the sellers may drive the price towards the South. The price may find its support around 2.01200.
The H4 chart seems bearish. However, the H1 chart looks good for the buyers. Thus, traders are to be very cautious before making any trading decision.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn