GBP/NZD: Bull Dances amid Bear’s Territory, What’s Next?

• GBP/NZD has been bearish having a bullish correction on the H4 chart.
• The pair is traded around a flipped level, which may work as a resistance.
• The H1 chart looks bullish, may end up making a significant bullish breakout.

GBP/NZD- Technical Analysis- H4 chart

The pair has been bearish on the H4 chart by breaching the simple moving average 30. As of writing, it is having a bullish correction by producing a bullish Marubozu candle. However, the pair is traded around 2.05270, which may work as a flipped level of resistance. A bearish reversal pattern around this level may attract the sellers to go short in the pair and drive it towards making a new low. The price may find its resistance around 2.03000.

On the contrary, if the price breaches the horizontal level, it may continue its correction until it finds its next resistance. In that case, the SMA 30 may play a pivotal role.

Price Action Analysis- H1 Chart

The chart shows that the price has been obeying a bearish trend line. As of writing, it is traded around 2.05270, where the price reacted earlier on this chart as well. A breakout at this level may push the price towards the trend line’s resistance. Thus, the buyers are to keep their eyes on the pair to take their profit out around the trend line. Since it depends on the pace of the movement, thus the take profit level varies.

On the downside, if the level produces a bearish reversal signal, the sellers may come into play and drive the price towards the South further. The price. in that case, may find its support around 2.03500.

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

Contact and follow Tareq on Twitter: @tareqfpn