GBP/NZD: Bear’s Domination Continues, What Next?

• GBP/NZD has been very bearish on the H4 Chart.
• Simple Moving Average 30 has been working as resistance.
• The H1 chart may make some bullish corrections.
• Intraday price action has been very bearish.

GBP/NZD- Technical Analysis-H4 Chart

The H4 chart shows that the price has been heading towards the South with extreme bearish momentum. At the last rejection, it produced a bearish engulfing candle and made an excellent bearish move. As of writing, the price seems to have found its support around 2.05000. It has been traded around this level for a while. The H4 traders may want to wait for the price to consolidate and produce a bearish reversal candle to go short in the pair again. The H4 chart suggests that the pair may find its next support around 2.03300.

On the contrary, the buyers must wait and may not make any trading decision to go long in the pair. The pair is to produce a strong bullish momentum or a bullish reversal pattern such as double bottom to look for long opportunities here.

Price Action Analysis-H1 Chart

The chart shows that the pair has been heading towards the downside with very good momentum. A bearish trend line has been working as resistance. At the last rejection, it moved towards the last swing low at 2.07160 and consolidated there for a while. It then made a breakout and made a new lower low in a hurry. The sellers may wait for the price to make a bullish correction followed by a bearish reversal pattern at the value areas to go short in the pair again. Considering value areas, the horizontal level 2.07160 may work as a flipped resistance. The trend line resistance is another value area, which the sellers may keep an eye at.

Considering both charts, it is explicit that the bear has been dominating in the pair. It may dominate in the pair next week if the value areas work as resistance and end up producing a strong bearish reversal pattern.

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

Contact and follow Tareq on Twitter: @tareqfpn