GBPNZD Down 49 Pips in Last Hour, Crosses 50 Day Moving Average; Price Base in Formation Over Past 30 Days

Hourly Update

(Last Updated September 10, 2020 16:17 GMT)

At the moment, GBPNZD’s rate is down -49 pips (-0.25%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as GBPNZD has now gone down 5 of the past 5 hours. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. The moving averages on the hourly timeframe suggest a bullishness in price, as the 20, 50, 100 and 200 are all in a bullish alignment — meaning the shorter durations are above the longer duration averages, implying a sound upward trend.

GBPNZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBPNZD is down 159 pips (0.81%) since the previous day (opening today near 1.94492), marking the 4th day in a row a decline has happened. Relative to other instruments in the Forex asset class, GBPNZD ranked 35th the previous day in terms of percentage price change. Let’s take a look at price chart of GBPNZD.

GBPNZD

GBPNZD Technical Analysis

First things first: GBPNZD crossed below its 50 day moving average yesterday. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 50 day average, which is 129 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. Also of note is that on a 30 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 14 days GBPNZD’s price has gone down 10 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPNZD, with 9 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 2.25, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

https://www.tradingview.com/x/uLFH123q/ GBPNZD is trading within a key weekly/daily zone of demand….this zone is based on a strong horizontal structure + confluence with 618 retracement of the last major leg and a support line of a falling parallel channel on 4h….on hourly time frame the price stopped falling after a massive selloff and set a higher low forming a double bottom pattern.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram