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.
GBPNZD D1(Daily) Chart Analysis – Strong Resistance Zone, Bearish Hidden Divergence, Stochastic Oscillator
On the daily chart, the price which is moving higher has reached a strong resistance zone, respected it and is currently bouncing lower from this zone. In addition to this, we could see that the price has created a bearish hidden divergence between the first high that has formed at 1.97115 and the second high that has formed at 1.96332 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 it’s extreme, which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
GBPNZD H1(1 Hour) Chart Analysis – Bearish Divergence, Lower lows, Strong Resistance Zone
On the the H1 chart, we could see that the price which is moving higher has created a bearish divergence between the first high that has formed at 1.96066 and the second high that has formed at 1.96322 based on the MACD indicator, which we may consider as evidence of bearish pressure. The price then moved lower and broke below the last low at 1.94836 thus creating lower lows, which we may consider as another evidence of bearish pressure. Also, we should note that the price which was creating series of higher highs, higher lows structure so far in recent times has created lower lows for the first time which we may consider as another sign favoring the bears. So basically, I expect the price to move lower further in the short term here until the strong resistance zone (marked in red) holds.
Technical Analysis & Forecast Summary
GBPNZD D1(Daily) Chart Analysis
- Strong Resistance Zone, Bearish Hidden Divergence, Stochastic Oscillator
GBPNZD H1(1 Hour) Chart Analysis
- Bearish Divergence, Lower lows, 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 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
Traders Academy Club Team.
