(Last Updated October 5, 2020 16:26 GMT)
At the time of this writing, GBPNZD’s rate is down -0.0002 (-0.01%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved up. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on GBPNZD. Given that we see an uptrend on the 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. Of note is that the 20 hour changed directions on GBPNZD; it is now pointing down. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.
GBPNZD End of Day Recap
Updated 00:30 GMT (04:30 EST)
The back and forth price flow continues for GBPNZD, which started today off at 1.94712, up 111 pips 0.57% from the day prior. Out of the 40 instruments in the Forex asset class, GBPNZD ended up ranking 3rd for the day in terms of price change. The price chart of GBPNZD below illustrates.
GBPNZD Technical Analysis
Moving average crossovers are always interesting, so let’s start there: GBPNZD crossed above its 20 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 100 day average, which is 62.8 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. It should be noted, though, that a trend in the opposite direction, going down, exists on the 30 day timeframe. Or to simplify this another way, note that out of the past 10 days GBPNZD’s price has gone up 7 them.
The View From Around the Web
We’re seeing some traders come out with interesting conviction on GBPNZD, with 16 buy signals on our radar and 3 sell signals. This imputes a buy/sell ratio of 5.33, which is very bullish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
GBPNZD 4-hourly chart above reveals what can be seen as a five-wave impulse pattern, labeled (1)-(2)-(3)-(4)-(5)….According to the EW theory, impulses show the direction of the larger trend and a three-wave correction follows every impulse pattern….According to Elliot Wave’s theory, once a 5-3 (impulse-corrective) cycle is completed , the market should resume in the direction of the impulse which is bullish in GBPNZD case.