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GBPNZD D1(Daily) Chart Analysis – Downtrend Line Breakout, Bullish Trend Pattern
On the daily chart, the price which is moving higher has broken above the most recent downtrend line which we may consider as evidence of bullish pressure. Also, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as another evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like the correction that we are looking for is happening. We may now move down to lower timeframe and see if we can find evidence supporting this bullish view.
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GBPNZD H4(4 Hours) Chart Analysis – Range, Key Support Zone, Bullish Divergence
Looking at the H4 chart we could see that the daily correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has reached a key support zone formed by the 100%(1.92155) Fibonacci expansion level of the first wave, the 100%(1.92247) Fibonacci expansion level of the second wave, and the bottom of this range. The price respected this key support zone and bounced higher from this zone. We also had a bullish divergence that has formed between the first low that has formed at 1.92323 and the second low that has formed at 1.92051 based on the MACD indicator which we may consider as evidence of bullish pressure. So until this key support zone holds my view remains bullish here and if we get a valid breakout above the top of this range, we may then consider it as a validation for the bullish view and may expect the price to move higher further.
Technical Analysis & Forecast Summary
GBPNZD D1(Daily) Chart Analysis
- Downtrend Line Breakout, Bullish Trend Pattern
GBPNZD H4(4 Hours) Chart Analysis
- Range, Key Support Zone, Bullish Divergence
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