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 evidence 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 H4 chart here.
GBPNZD H4(4 Hours) Chart Analysis – Strong Resistance Zone, Bearish Divergence, Stochastic Oscillator
On the H4 chart, the price reached a strong resistance zone, respected it and is bouncing lower from this zone. Also, we could see the price has created a bearish divergence between the first high that has formed on 21st March 2023 and the second high that has formed on 27th March 2023 based on the MACD indicator. We may consider these as signs indicated by the market that the buyers are losing control and the sellers are currently having the upper hand. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme (80 level) which we may consider as another sign favouring the sellers. So based on all this, everything looks good here for the bears and we may now move down to lower timeframe and see if we can find evidence supporting this short-term bearish view.
GBPNZD H1(1 Hour) Chart Analysis – Key Resistance Zone, Bearish Hidden Divergence, Continuing Bearish Divergence
On the H1 chart, the price which is moving higher has currently reached a key resistance zone, respected it and is bouncing lower from this zone. This key resistance zone is formed by the 61.8%(1.98274) Fibonacci expansion level of the big wave and the 61.8%(1.98380) Fibonacci expansion level of the small wave. In addition to this, we could see that the price has created a bearish hidden divergence between the first high formed at 1.98554 and the second high formed at 1.98170, followed by a continuing bearish divergence between the first high that has formed at 1.98170 and the second high that has formed at 1.98198 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, currently, there are no signs opposing this short-term bearish view. So everything looks good here for the bears and until the key resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here.
Technical Analysis & Forecast Summary
GBPNZD H4(4 Hours) Chart Analysis
- Strong Resistance Zone, Bearish Divergence, Stochastic Oscillator
GBPNZD H1(1 Hour) Chart Analysis
- Key Resistance Zone, Bearish Hidden Divergence, Continuing Bearish Divergence
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.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Home Trader Club Team.
