Market NewsTechnical Analysis

GBP/NZD: Sellers Wait for Their Next Opportunity

  • GBP/NZD is on consolidation on the H4 chart.
  • The pair trades below the SMA 30’s resistance.
  • The H1 chart trades around the last swing low.
  • Intraday minor charts have been bearish in the Tokyo Session.
GBP/NZD H4 chart
GBP/NZD H4 chart

GBP/NZD- Technical Analysis- H4 chart

The chart shows that the price after being bearish for a long time, found its support at 2.00850 and made a bullish correction. The price breached the simple moving average 30’s resistance and traded above it for one more candle. However, the next candle closed as a bearish engulfing one closing below the SMA 30. The sellers drove the price towards the downside with one more candle. On its way, it made a breakout at the last swing low. As of writing, the pair trades below the horizontal level of 2.00850.

The sellers may keep their eyes on the pair to go short. The price may find its next support around 1.98000.

The buyers may wait for the chart to produce a strong bullish move to be able to find long opportunities with lucrative risk-reward.

GBP/NZD H1 chart
GBP/NZD H1 chart

Price Action Analysis- H1 Chart

The chart shows that after making a strong bearish move, the price had a bounce at 2.00600. It made a bullish correction and found its resistance at a flipped level. Consequently, it made another bearish move. As expected, the price has found its support again at the last swing low. The sellers may wait for the price to make a breakout and go short. It may find its support around 1.99500.

On the other hand, if the level produces a bullish reversal candle and makes a breakout at the level of 2.01100, the buyers may push the price towards the upside. In that case, it may find its resistance again at the level of 2.02000.

Considering both charts, it seems that the sellers have an advantage here. The buyers may get optimistic based on the H1 chart. Nevertheless, the H1 chart may get bearish if it makes a breakout at the current support level.

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

Contact and follow Tareq on Twitter: @tareqfpn

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