Market NewsTechnical Analysis

GBP/NZD: Pair Gets Choppy, Traders to Wait for a Breakout

  • GBP/NZD has been choppy on the H4 chart.
  • The pair trades below the simple moving average.
  • Traders are to be patient to find its next direction.
  • Intraday minor charts have been choppy.
GBP/NZD H4 Chart
GBP/NZD H4 Chart

GBP/NZD – Technical Analysis- H4 Chart

The chart shows that despite making a bearish breakout at the simple moving average 30, the price did not make a move towards the South. It headed towards the North and produced a bullish inside bar. The next candle closed as a bearish engulfing one. As of writing, the pair consolidates around the SMA 30. The sellers may wait for the price to make a breakout at the consolidation support to go short in the pair. The price may find its support around 2.06565.

On the contrary, if the price braches the support level and produces a bullish reversal pattern, the buyers may push the price towards the North. The price may find its resistance around 2.09615. A bullish breakout at that level may generate more bullish momentum and push the price towards the North further.

GBP/NZD H4 Chart
GBP/NZD H4 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been extremely choppy around the support level of 2.08040. The buyers may keep their eyes on this level since it has potential to work as a support and push the price towards the North. The price may find its resistance around 2.09200 if it breaks 2.08600.

However, the sellers, on the other hand, may wait for the price to make a breakout at the horizontal support and produce a bearish reversal pattern right at the breakout level. A bearish reversal pattern at the breakout level may drive the price towards the South with a good momentum. The price may find its support around 2.07300.

Considering both charts, it seems that the pair could go either way. Thus, traders are to be very careful before making any trading decision.

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

Contact and follow Tareq on Twitter: @tareqfpn

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