Market NewsTechnical Analysis

GBP/NZD: Be Patient and Watchful to Find the Next Direction

  • GBP/NZD has been bullish on the H4 chart trading around a significant resistance.
  • The pair trades above the simple moving average 30’s support.
  • The H1 chart looks bullish but finding strong resistance around 2.05730.
GBP/NZD H4 chart
GBP/NZD H4 chart

GBP/NZD- Technical Analysis- H4 chart

The chart shows that the price made a strong bullish move on the H4 chart upon finding its horizontal support at 2.02500. It produced a bullish engulfing candle and continued its journey for a while. On its way, it made a breakout at the SMA 30’s resistance as well. However, as of writing, the pair seems to have found its resistance around 2.05870. A breakout above the level may push the price towards the North. The price may find its resistance around 2.08000.

On the contrary, if the level works as a resistance and produces a bearish reversal pattern, the sellers may go short below the SMA 30’s support. The price may find its support around 2.02500.

GBP/NZD H1 chart
GBP/NZD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price made a good move towards the upside by producing an inverse head and shoulder. As expected, the price has found its resistance around 2.05800. The buyers must be waiting for the price to make a breach at the level to go long in the pair and push it towards the North further. The level of 2.06500 may work as the next resistance here.

On the contrary, if the level works as a resistance and ends up producing a bearish reversal pattern, the sellers may go short in the pair and drive the price towards the South. The price may find its support around 2.04000.

Considering both charts, it seems that the pair is to make a decision here to give a solid direction. Traders are to be patient and watchful on the price action.

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

Contact and follow Tareq on Twitter: @tareqfpn

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