GBP/NZD: The Pair Makes a New Higher High since February 2020

• The pair has made a breakout at the last swing high in the H4 chart
• Simple Moving Average 30 has been a support
• The H1 chart looks bullish
• A bearish correction/consolidation may occur to attract more buyers

GBP/NZD H4 Chart Makes a Breakout at Significant Resistance

The pair has been bullish in the H4 chart for some weeks. It found its resistance around 1.10600 and made a long bearish correction. The price has found its support at Simple Moving Average 30 and made a strong bullish move upon producing an Inside Bar. On its way, it made a bullish breakout at 2.10600. The pair may extend its bullish journey as far as the current momentum is concerned. However, some buyers may wait for the price to make a bearish correction up to the breakout level and get a bullish reversal pattern to go long in the pair again and push the price towards the North further. As mentioned, considering the momentum, the price may find its support way above than the flipped level of support. The last time pair traded around 2.11500 was in January 2020. It suggests that how dominating the Bull has been recently.  

The H1 Chart is Bullish but Overbought

The H1 has produced a Triple Bottom and made a strong bullish move. The price headed towards the North with strong bullish momentum. The last candle closed as a Spinning Top. As of writing, the current candle looks bearish as well. The pair may make a bearish correction or consolidate before making its next bullish move. The flipped level of support suggests that the pair is overbought. Thus, the H1 traders may be patient to find their next entry to go long in the pair. However, the sellers may stay away from the pair to sell it off today. Major charts are extremely bullish. Thus, it is better to look to go long in the pair from the value areas.

Considering both charts, the pair may remain bullish for some days. Whenever, the price consolidates or makes a bearish correction, the buyers may keep their eyes on the pair to go long upon having bullish reversal pattern.

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

Contact and follow Tareq on Twitter: @tareqfpn