- GBP/NZD has been bearish on the H4 chart.
- The Simple Moving Average has been working as resistance.
- The H1 chart looks slightly bullish.
- Intraday price action suggests it may get choppy.
GBP/NZD- Technical Analysis-H4 Chart
The chart shows that the pair has been heading towards the downside with a good momentum. The simple moving average 30 has been working as resistance. Thus, it may attract the sellers to look for short opportunities. As of writing, the pair consolidates. It produced a bearish inside bar. It may have attracted the sellers to go short. However, it is the last day of the week. Thus, the sellers look a bit skeptical. This may make the pair get choppy until the market starts its operation next week.
The chart suggests that if the pair produces a bearish reversal pattern at the value areas, it may find its next support around 2.08250.
On the upside, the buyers may have to wait for the chart to produce a bullish reversal pattern at the last swing low followed by a breakout at the SMA 30. As things stand with the pair, it may need time to happen.
Price Action Analysis- H1 Chart
The chart shows that the price after being bearish for a long time made a strong bullish move. It had a rejection around 2.10350 and made a long bearish correction. The price upon producing an ABC pattern headed towards the North. However, it failed to make a breakout at the last swing high. As of writing, the pair trades around 2.10350. A bullish breakout above the level may push the price towards the North. The price may find its resistance around 2.10900.
On the downside, the last swing high may work as a double top resistance. If the price makes a bearish breakout at 2.09630, the sellers may consider it neckline breakout. This may generate strong bearish momentum and drive the price towards the South.
Considering both charts, it seems that the bear has an edge. We may see some good bearish move in the pair next week.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn