GBP/NZD: Bull Dances Amid Bear’s Territory

• The pair made a move and made a significant bearish breakout
• Simple Moving Average 30 has been a resistance
• Trades around a horizontal support, which may hold the price for a while
• Intraday price action has been bullish

GBP/NZD the Bear Made a Move

The pair after being bullish on the H4 chart found its resistance around 2.15800 and made a strong bearish move. On its way, it made a breakout at Simple Moving Average 30. The price had a correction and produced a bearish engulfing candle right at SMA 30’s resistance. As expected, the price remained bearish for two more candles. However, it has found its support at 2.12400. It had a bounce twice at the level. At its second bounce, it produced a bullish engulfing candle. This might make the pair sluggish for a while on the H4 chart. However, the sellers may keep their eyes on the pair to short below 2.12400. The price may find its next support around 2.09600. On the upside, if the price continues its bullish move and makes a bullish breakout at SMA 30, the buyers may take over and push the price towards the North.

The H1 Chart Finds a Solid Support

The H1 chart looks very bullish though. The chart shows that the price had a bounce at 2.12400 on Wednesday. It then made a bullish correction and had a rejection at a bearish trend line. Upon making a bearish move, it had its second bounce and produced a bullish engulfing candle. As of writing, the pair trades right at the trend line’s resistance. Intraday buyers may keep their eyes on the pair to go long above that trend line’s flipped support. Minor intraday charts have been bullish as well. Thus, the pair may end up having a bullish neutral day on intraday charts.

The H4 chart still looks good for the bear. The H1 and other intraday charts look good for the bull. Thus, we may see a bullish move up to the London session ends, but at the end of the trading day, the pair may get a strong rejection upon finding resistance.

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

Contact and follow Tareq on Twitter: @tareqfpn