- GBP/NZD gets trapped within a box on the H4 chart.
- The SMA 30 has been working as resistance still.
- The price on the H1 chart heads towards yesterday’s high.
- Intraday minor charts have been bullish.
GBP/NZD- Technical Analysis- H4 Chart
The chart shows that the price gets trapped within a box after making a bearish move. As of writing, the pair trades around the resistance. The simple moving average 30 has been working as a resistance. However, the sellers are to wait for the chart to produce a bearish move and make a breakout at the channel’s support. A breakout may drive the price towards the level of 2.05000.
On the other hand, if the price breaches the resistance, the buyers may get themselves engaged and push the price towards the North. In that case, the level of 2.09400 may work as a level of resistance.
Price Action Analysis- H1 Chart
The chart shows that it trades around a level of resistance at 2.08230. The price reacted at this level several times. Thus, the sellers are going to wait to go short upon having bearish signal from this area. On the contrary, if the price breaches the level, the buyers may continue pushing the price towards the North. The price may find its resistance around 2.09030.
Considering both charts, it seems that traders are to be patient to find its next route. The level of resistance looks good on both the H4 and H1 chart to drive the price towards the downside. Nevertheless, the last swing low on the H1 chart or the support of the box on the H4 chart is not too far away. Thus, it may not be a long move.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn