GBPNZD Up 12 Pips Over Past Hour, 3 Day Down Streak Broken; Crosses 100 Day Moving Average

At the time of this writing, GBPNZD’s rate is up 12 pips (0.06%) 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 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)

A moment of silence, please, for the end of GBPNZD’s 3 day down streak; price ended the previous day up 61 pips (0.31%) to finish the day at a rate of 1.98522. Relative to other instruments in the Forex asset class, GBPNZD ranked 14th the previous day in terms of percentage price change. The price chart of GBPNZD below illustrates.

GBPNZD

GBPNZD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBPNZD crossed above its 100 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 20 day average, which is 50.1 pips away. Volatility for GBPNZD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. For additional context, note that price has gone up 7 out of the past 14 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPNZD, with 11 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 1.83, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a divergence technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

the direction of price movement is trading downwards, we see a pattern of lower highs and lower lows being formed. price has respected our fib region, broken the trendline and retested, therefore we could expect further downside to targeted regions.risk/reward ratio 1:2


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