GBP/NZD: Bear Sets the Stage

• GBP/NZD has been bearish on the H4 chart breaching a horizontal support.
• The SMA 30 has been working as a resistance.
• The H1 chart is on consolidation after being bearish.
• Intraday minor charts have been bearish.

GBP/NZD- Technical Analysis- H4 Chart

The chart shows that the price has found its resistance around the simple moving average 30 and produced a bearish Marubozu candle. The next candle came out as a strong bearish candle closing below a significant horizontal support at 1.06370. The sellers are going to wait for the chart to offer short entries from the value areas. Thus, they may keep their eyes on the price action around 1.06370. The price may find its next support around 2.04000.

To the upside, the pair is to produce a bullish reversal pattern or a strong bullish move breaching the SMA 30’s resistance to offer long entries. Considering recent price action, it may take time. Meanwhile, the sellers may continue driving the price towards the South.

Price Action Analysis- H1 Chart

The chart shows that the price has been obeying a down trending trend line. It the last rejection, it produced a bearish engulfing candle and headed towards the South in a hurry. On its way, it breached the level of 2.06370, where the price reacted several times. As of writing, the chart has been having a bullish correction. The sellers will keep their eyes on the price action around the breakout level. A bearish reversal signal may attract them to go short in the pair and drive it towards the level of 2.05000.

The buyers may stay away unless it makes a breakout at the trend line’s resistance.

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

Contact and follow Tareq on Twitter: @tareqfpn