Market NewsTechnical Analysis

GBP/NZD: Contrasting Price Action on the H4 and H1

  • GBP/NZD looks bearish finding resistance at a horizontal level on the H4 chart.
  • The pair trades around the SMA 30 for a while indicating indecisive with it.
  • The H1 chart made a good bullish move having a bearish correction.
  • Intraday minor charts have found resistance at yesterday’s high.
GBP/NZD H4 Chart
GBP/NZD H4 Chart

GBP/NZD- Technical Analysis- H4 Chart

The chart shows that the price has been on a bullish correction on the H4 chart after making a bearish move. As expected, it had a bounce 2.05200 and produced a bullish candle. As of writing, the pair trades around the horizontal resistance at 2.06500. The price reacted at this level several times. Thus, traders are to keep their eyes on the price action around this level. A bearish reversal signal may drive the price towards the South. It may find its next support around 2.04000.

On the contrary, if the price breaches the level, the buyers may push the price towards the North. In that case, it may find its resistance around 2.07500.

GBP/NZD H1 Chart
GBP/NZD H1 Chart

Price Action Analysis- H1 Chart

The H1 chart shows that the price found its support around 2.05200 and produced a morning star. Then, it made a bullish move and had a rejection at 2.06640. Upon producing an inverted hammer, the pair has been heading towards the South searching for its support. The buyers may keep their eyes on the pair to produce a bullish reversal signal at the value areas to go long again. A breakout at 2.06640 may push the price towards 2.07300.

On the contrary, the sellers may not be able to find short opportunities with lucrative risk-reward. However, if the price goes back to the resistance again and ends up producing a double top, then the scenario may be changed.

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

Contact and follow Tareq on Twitter: @tareqfpn

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