GBPNZD Technical Analysis And Forecast

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GBPNZD Forecast Update And Follow Up

Hi Traders! GBPNZD technical analysis and forecast 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!

GBPNZD H4(4 Hour) Chart Analysis – Bearish Trend Pattern, ADX Indicator, Strong Resistance Zones

On the H4 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening and the price which is moving higher has created a bearish hidden divergence that has formed between the first high that has formed on 13th April 2021 and the second high that has formed on 19th April 2021 based on the MACD indicator which we may consider as another evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. We also have two strong resistance zones that has formed and the price which is moving higher has reached the first resistance zone, respected it and is currently moving lower. There are two possible scenarios from here, the price might move lower from the current zone or alternatively if the price moves higher then the next area to look for bearish setups with bearish evidences would be the second resistance zone.
GBPNZD Technical Analysis And Forecast

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.

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