- GBP/NZD is heading towards the South.
- The pair trades below the SMA 30.
- The H1 chart looks very bearish.
- Intraday minor charts have been bearish and may extend its bearish move further.
GBP/NZD-Technical Analysis-H4 Chart
The pair upon finding its resistance around 2.14000 made a bearish move followed by a breakout at the Simple Moving Average 30. The price then made a bullish correction and found its resistance around 2.12320. Upon producing a bearish engulfing candle at the resistance, the price has headed towards the South. As of writing, the pair seems to be very bearish. It may continue its move and find its next support around 2.10385.On the upside, if the price consolidates, it may find its resistance around 2.11500. A breakout above that level may push the price towards the level from where it is trending now.
Price Action Analysis-H1 Chart
The chart shows that the price has been heading towards the downside with good bearish momentum. At the last wave, it had a bounce around 2.11475. It then made a breakout at the level. As of writing, the pair trades below that breakout level. Thus, the sellers may keep their eyes on the pair to go short from the value areas. The level of 2.11475 may work as a flipped resistance. If the level produces a bearish reversal pattern, the sellers may go short on the pair and drive it towards the South. The price may find its next support around 2.10150.
The H4 and the H1 chart look very good for the sellers. Traders may keep their eyes on the H1 chart to consolidate or a bullish correction followed by a bearish reversal pattern to go short on the pair. As things stand with the pair, it may remain bearish for some days.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn