GBPNZD Up 2 Pips On Hourly Chart, Price Base in Formation Over Past 90 Days; Sentiment Strongly Favors Buyers

Hourly Update

(Last Updated September 18, 2020 23:17 GMT)

At the moment, GBPNZD’s rate is up 2 pips (0.01%) from the hour prior. The hourly chart shows that GBPNZD has seen 2 straight up hours. Regarding the trend, note that the strongest trend exists on the 50 hour timeframe. 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 1.92012, down 57 pips 0.3% from yesterday. Relative to other instruments in the Forex asset class, GBPNZD ranked 36th yesterday in terms of percentage price change. The price chart of GBPNZD below illustrates.

GBPNZD

GBPNZD Technical Analysis

The first thing we should note is that the current price of GBPNZD is sitting close to its 20, 50 and 100 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 386 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. Price action traders in particular will want to note that the 90 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. Or to simplify this another way, note that out of the past 10 days GBPNZD’s price has gone down 8 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPNZD, with 15 buy signals on our radar and 1 sell signals. This imputes a buy/sell ratio of 15, which is very 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.

I’ll keep an eye on a price action signal on the daily frame to go long on GBPNZD….I see a well respected channel on the monthly frame….With the price testing a daily supply zone.


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