GBPNZD Short Term Forecast And Technical Analysis

0
302
GBPNZD Short Term Forecast Follow Up and Update

Hi Traders! GBPNZD short term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, 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! Let’s start our analysis from the highest timeframe which will be the daily chart here.

You can watch the video explanation of this idea here

GBPNZD D1(Daily) Chart Analysis – Strong Resistance Zone, Potential Bearish Divergence, Stochastic Oscillator

On the daily chart we had a bullish rally, currently it looks like this bullish rally has completed itself, as the price reached a strong resistance zone, respected it and is bouncing lower from this zone. Generally, after a bullish rally we may expect corrections and then further continuation higher. We also have a potential bearish divergence that is forming between the first high that has formed on 18th June 2021 and the second high that has formed on 13th July 2021 based on the MACD indicator which we may consider as evidence of bearish pressure. Also based on the Stochastic Oscillator we could see that the price has reached its extreme we may consider this as yet another evidence of bearish pressure. We may now move down to one timeframe lower and look for evidences supporting this short term bearish view.
GBPNZD Short Term Forecast And Technical Analysis

 

GBPNZD H4(4 Hours) Chart Analysis – Bearish Convergence, Strong Resistance Zone

On the H4 chart, the price has created a bearish divergence between the first high that has formed at 1.99282 and the second high that has formed at 1.99561 based on the MACD indicator. The price then moved lower and broke below the low at 1.98250 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence. Hence as per the book scenario, after a bearish convergence, we may look for possible corrections and then further continuation to the downside. Currently it looks like a correction is happening. So the bottom line here is that the H4 chart has evidences supporting the bearish view. Until the strong resistance zone shown in the image below (marked in blue) holds my short term view remains bearish here and I expect the price to move lower further.
GBPNZD Short Term Forecast And Technical Analysis

Technical Analysis & Forecast Summary

GBPNZD D1(Daily) Chart Analysis 

  • Strong Resistance Zone, Potential Bearish Divergence, Stochastic Oscillator

GBPNZD H4(4 Hours) Chart Analysis 

  • Bearish Convergence, Strong Resistance Zone

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 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.

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 Traders Academy Club Now

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,

Vladimir Ribakov
Certified Financial Technician

Click To Join Our Community Telegram Group

Advertisement

How to Invest in Amazon

4 Advantages of Amazon Investing - Read More

  • Amazon’s net a bullish 450% 5-year gain
  • Amazon’s ROI is 6x’s the S&P 500 Index of 67%
  • AMZN shares may hit +$10,000 by mid-November 2024
  • Amazon’s growth since IPO tops more than 12,000%

Now is the time to invest in Amazon

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments