Market NewsTechnical Analysis

GBP/NZD: Does the Bull Continue its Run or Find a New Support?

  • The pair is in an uptrend on the H4 chart
  • The price has had its second rejection at 2.15200
  • Simple Moving Average 30 has been working as a support
  • Intraday price action has been bearish so far
GBP/NZD H4 Chart
GBP/NZD H4 Chart

GBP/NZD The Bull Finds a Strong Fence

GBP/NZD pair has been up trending by obeying a bullish trend line on the H4 chart. Simple Moving Average 30 has been working as support as well. The buyers have pushed the price at its weakness. The price then had a rejection at 2.15200 yesterday. After the rejection, it had a bearish correction and found its support at 2.14000. The price headed towards the North with good momentum. However, it has found its resistance again and has produced a bearish engulfing candle. It suggests that the pair may make a bearish correction here. It is the second rejection, so the correction may be longer than the last one.

A bullish breakout at 2.15200 may attract buyers again. The price may find its next resistance around 2.17000.

GBP/NZD H1 Chart
GBP/NZD H1 Chart

A Bullish Trend Line is in Play

The H1 chart looks very lucrative for the buyers. The price has been up trending by obeying a bullish trend line. After having a double rejection at 2.15200, the price made a bearish correction. It seems to have found its support right at the trend line’s support. The chart produced a Spinning Top. As of writing, price action has been very bullish. If the current candle closes as a bullish engulfing candle, the buyers may go long in the pair and push the price towards the North further. A breakout above 2.15000 may add more fuel and push the price towards 2.16300 with good momentum.

On the contrary, if the price makes a bearish breakout at the trend line, intraday traders may look to go short in the pair. In case of a bearish breakout, the price may find its next support around 2.12500.

The H4 chart still favors the Bull. The H1 chart could go either way. A bearish breakout at the trend line may make it bearish. A bullish reversal at the trend line, on the other hand, may make it bullish. Considering both charts, it seems that the Bull is slightly ahead of the Bear.

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

Contact and follow Tareq on Twitter: @tareqfpn

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