Market NewsTechnical Analysis

GBP/NZD: Bear Finds 2.39000 as its Hinder, Bull Does the SMA 30

  • GBP/NZD has been bearish on the H4 chart trading around the swing low.
  • The simple moving average 30 has been working as its resistance.
  • The H1 chart looks choppy heading towards the North gradually.
GBP/NZD H4 chart
GBP/NZD H4 chart

GBP/NZD- Technical Analysis- H4 chart

The chart shows that the price had a rejection at the simple moving average 30 and produced a bearish engulfing candle. The chart then produced two consecutive bearish candles closing within 2.03900. It is a significant level since the price had a bounce earlier here. The sellers may wait for the price to make a breakout at the level to go short and drive the price towards the South. If that happens, the price may find its next support around 2.02800.

On the contrary, if the price continues to go towards the North and makes a breach at the SMA 30’s resistance, the buyers may wait for the chart to produce a bullish reversal pattern to go long in the pair. The price may find its resistance around 2.05900 in case of that.

GBP/NZD H1 chart
GBP/NZD H1 chart

Price Action Analysis- H1 Chart

The chart shows that after being bearish, the price has found its support at 2.03750. Since then, it has been gradually moving towards the North. As of writing, the pair has had a rejection at 2.04400. There is a trend line resistance as well. It means the buyers may not be that sanguine to push the price towards the North. The sellers, on the other hand, may wait for the price to produce a bearish reversal pattern at the value areas preferable at the trend line’s resistance. It means the pair may head towards the upside sluggishly. If the trend line works as a resistance again, the pair may find its next support around 2.03200.

On the contrary, if the price breaches the trend line, the buyers may push the price towards the North. In that case, it may find its resistance around 2.05000.

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

Contact and follow Tareq on Twitter: @tareqfpn

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