Market NewsTechnical Analysis

GBP/NZD: Wait for a Breakout or a Bearish Reversal Pattern at the Key Areas

  • GBP/NZD has been trapped within an equidistant channel on the h4 chart.
  • The pair trades above the simple moving average 30.
  • The H1 chart looks good for the buyers.
  • Intraday minor charts are yet to find a direction.
GBP/NZD H4 chart
GBP/NZD H4 chart

GBP/NZD- Technical Analysis- H4 chart

The chart shows that the price has been trapped within an equidistant channel. As of writing, the pair trades around the resistance of that channel. However, simple moving average 30 has been working as a support. A breach at the SMA 30’s support may drive the price towards the support of the channel.

On the other hand, if the price makes a bullish breakout at the channel’s resistance, the buyers may keep their eyes to go long in the pair. In that case, the price may find its resistance around 2.09200.

GBP/NZD H1 chart
GBP/NZD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the resistance is a bit above than where the pair is traded right now. Thus, the sellers may wait for the price to produce a bearish reversal at the resistance. If that happens, the sellers may drive the price towards the South. The price may find its support around the last swing low at 2.06450.

However, if the price makes a bullish breakout at the resistance, the buyers may wait for a breakout confirmation followed by a bullish reversal pattern at the breakout level to go long in the pair. The price may find its resistance around 2.08000.

Considering both charts, traders should be patient to find its next direction on the both charts. Thus, it may get sluggish for a while. However, a bullish breakout or a bearish reversal at the key resistance are the things that traders are going to wait here for.

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

Contact and follow Tareq on Twitter: @tareqfpn

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