Hi Traders! GBPNZD short term forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
GBPNZD D1(Daily) Chart Analysis – Strong Support Zone, Bullish Divergence, ADX Indicator
On the daily chart, the price which was moving higher broke above a strong resistance zone, after the breakout this strong resistance zone is acting as a strong support zone for us. Currently the price which is moving lower, reached this strong support zone respected it and bounced higher from this zone. Also, we could see that the price which was moving lower has created a bullish divergence between the first low formed at 2.06627 and the second low formed at 2.06051 based on the MACD indicator, we may consider these as evidences of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidences supporting this short term bullish view.
GBPNZD H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Range
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. In addition to this, there are no signs opposing this bullish view at the moment. Currently, it looks like the price is moving inside a range. This range is formed by the highs and lows reaching parallel support and resistance zones. A valid breakout above the top of the range would be the validation for this bullish view. Alternatively if we get a valid breakout below the bottom of this range then this bullish view will be invalidated.
Technical Analysis & Forecast Summary
GBPNZD D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Divergence, ADX Indicator
GBPNZD H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Range
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
Download our best forex indicators here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Home Trader Club Team.
