- GBP/NZD is moving towards the South gradually on the H4 chart.
- The pair is approaching a massive support level.
- The H1 chart looks good for the sellers.
- Intraday minor charts have been bearish.
GBP/NZD- Technical Analysis-H4 Chart
The chart shows that the pair made a long bearish move on the H4 chart. It then had a bounce at 2.96320. After making a bullish correction, it found its resistance around 2.07000. Upon producing a double top, the price has been heading towards the South again. As it approaches at the last swing low, the sellers may wait for the price to make a bearish breakout at the support. A breakout confirmation followed by a bearish reversal pattern around the breakout level may drive the price towards the South further. The price may find its next support around 2.05000.
On the contrary, if the price finds its support at the last swing low again and ends up producing a bullish reversal pattern, the pair may head towards the North. A breakout at the 2.07000 may be considered as neckline breakout. It may generate bullish momentum and push the price towards 2.07800.
Price Action Analysis- H1 Chart
The chart shows that the price has been gradually heading towards the South. The level of 2.06320 may hold the price as a support. The buyers will be waiting for the chart to produce a bullish reversal pattern at the level to go long in the pair. The price may find its resistance around 2.07000. A breakout above may generate more pressure and make a new higher high here.
On the contrary, if the price breaches the support level, the sellers may wait for the chart to confirm the breakout and produce a bearish reversal pattern to go short in the pair. The pair may find its support around 2.05900.
Considering both charts, traders may have to keep an eye on the level of 2.06320. Buyers are to wait for a bullish reversal and sellers are to wait for a bearish breakout to make a trading decision.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn