Market NewsTechnical Analysis

GBP/NZD: Choppy Price Action before a Breakout

  • GBP/NZD is on consolidation after being bearish on the H4 chart.
  • The SMA 30 has been working as a resistance.
  • The H1 chart looks choppy trading within a triangle.
  • Intraday minor charts look slightly bearish biased.
GBP/NZD H4 Chart
GBP/NZD H4 Chart

GBP/NZD- Technical Analysis- H4 Chart

The chart shows that the price has been on consolidation after being bearish on the H4 chart. The simple moving average 30 has been working as a resistance. The sellers may wait for the moving average’s resistance to cross the horizontal level and the chart to produce a bearish reversal signal at that confluence level. If that happens, the pair may make a strong bearish move and find its support around 2.00000. It would be a huge move since the number is extremely round, which will play a vital role to determine the pair’s next direction for quite a while.

The buyers on the other hand may wait for the price to breach the SMA 30’s resistance and push the price towards the North. In that case, it may find its resistance around 2.06500.

GBP/NZD H1 Chart
GBP/NZD H1 Chart

Price Action Analysis- H1 Chart

Traders are to keep their eyes on the price action within this Disjoint Channel. The price had several bounces and rejections at the channel’s support and resistance. Thus, a breakout, on the either side, may attract the traders to make their next trading decision. A bearish breakout at the support may drive the price towards the South. In that case, it may find its support around 2.03000.

A bullish breakout, on the contrary, may push the price towards the North and keep it bullish for a while. In that case, the level of 2.05000 may work as a resistance.

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

Contact and follow Tareq on Twitter: @tareqfpn

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