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GBPNZD H1(1 Hour) Chart Analysis – Bearish Convergence, Uptrend Line Breakout, Bearish Hidden Divergence, Bearish Divergence,
On the H1 chart, the price which was moving higher has created a bearish divergence between the first high that has formed at 2.00882 and the second high that has formed at 2.01288 based on the MACD indicator. The price then moved lower and broke below the last low at 1.99664 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. In addition to this, the price has also broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. Currently, it looks like a correction is happening and in addition to this, the price has created a bearish hidden divergence that has formed between the first high that has formed at 2.01288 and the second high that has formed at 2.00232 followed by a regular bearish divergence between the first high formed at 2.00232 and the second high that has formed at 2.00950 based on the MACD indicator which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further.
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 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.
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Arvinth Akash
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