Hi Traders! GBPNZD forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available!
GBPNZD D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Divergence, Parabolic Sar
On the daily chart after the strong bearish move currently, it looks like a correction is happening. We have a strong resistance zone that has formed based on the 100%(1.93002) Fibonacci expansion level of the big wave and the 100%(1.94484) Fibonacci expansion level of the small wave we have. We also have the 200 moving averages coinciding on the same area which makes this area a key resistance zone for us. The price which was moving higher reached this key resistance zone respected it and is currently moving lower from this zone. We also have a bearish divergence that has formed between the first high that has formed at 1.92116 and the second high that has formed at 1.94143 based on the MACD indicator which we may consider as evidence of bearish pressure. Also based on the Parabolic Sar the dots are above the price which we may consider as another evidence of bearish pressure. So everything looks good here for the bears, we may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
GBPNZD H1(1 Hour) Chart Analysis – Uptrend Line Breakout, Strong Resistance Zone, ADX Indicator, Parabolic Sar
On the H1 chart, we have a good uptrend line that has formed and the price which is moving lower has currently broken below this dynamic support and is holding below it, we may consider this as evidence of bearish pressure. Also after this uptrend line breakout, we had a pullback with the price reaching a strong resistance zone, the price respected this zone and is currently moving lower. Also, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bearish pressure. In addition to this based on the Parabolic Sar, the dots are above the price here as well which we may consider as yet another evidence of bearish pressure. Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further.
Technical Analysis & Forecast Summary
GBPNZD D1(Daily) Chart Analysis
Key Resistance Zone, Bearish Divergence, Parabolic Sar
GBPNZD H1(1 Hour) Chart Analysis
- Uptrend Line Breakout, Strong Resistance Zone, ADX Indicator, Parabolic Sar
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to join us in our live market analysis, on daily basis, and improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
To your success,
Certified Financial Technician