Market NewsTechnical Analysis

GBP/NZD: The Bear is on Its Way to Make a Long Run

  • GBP/NZD trades within a horizontal channel
  • The pair may end up making a bearish breakout at channel’s support
  • The H1 chart looks good for the bear
  • Intraday price action has been bearish
GBP/NZD H4 Chart
GBP/NZD H4 Chart

GBP/NZD-Technical Analysis- H4 Chart

The H4 chart shows that the pair trades within a horizontal channel for a while. As of writing, the price is about to make a bearish breakout at channel’s support. If the current candle closes below channel’s support, the sellers may look to go short upon having breakout confirmation. Simple Moving Average 30 has been working as resistance too. The current candle is formed right at SMA 30’s resistance. Many traders may have waited for a signal like this to go short in the pair. The price may find its next support around 2.10000.

On the upside, the chart may not end up making a breakout. If the price goes back into the channel within the next candle, buyers may think they have a chance to push the price towards the North later. Nevertheless, SMA 30 is to be breached to attract more buyers and to get enough liquidity.

GBP/NZD H1 Chart
GBP/NZD H1 Chart

Price Action Analysis-H1 Chart

The H1 chart looks unyielding for the sellers. The price has been bearish by obeying a trend line. At the last rejection, it headed towards the South with excellent bearish momentum. On its way, it made a breakout at 2.11700.If the candle closes below the level and the chart produces a bearish reversal pattern at the value area, sellers may look to go short in the pair and drive the price towards the South rest of the day. The price may find its next support around 2.10700.

On the contrary, the buyers do not seem to have a happy conclusion to wrap up September. As things stand with the pair, it may remain bearish for some days with the channel’s support breakout on the H4 chart. To add more fuel with it, trend line’s resistance may play a vital role as well.

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

Contact and follow Tareq on Twitter: @tareqfpn

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