GBP/NZD Down 63 Pips in Last 4 Hours, Makes Big Move Relative to Past Month; Price Base in Formation Over Past 14 Days

GBP/NZD 4 Hour Price Update

Updated July 22, 2020 09:23 AM GMT (05:23 AM EST)

GBP/NZD is down 63 pips (0.33%) since the last 4 hour candle (opening the current 4 hour candle near 1.908), marking the 4th candle in a row a decrease has occurred. Compared to its peers in the Forex, GBP/NZD gave its buyers a return that ranked 36th in terms of percentage change since the last 4 hour candle.

GBP/NZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/NZD is down 10 pips (0.05%) since yesterday (opening today near 1.91545), marking the 2nd day in a row a decrease has occurred. Relative to other instruments in the Forex asset class, GBP/NZD ranked 31st yesterday in terms of percentage price change. Here is a price chart of GBP/NZD.

GBP/NZD Technical Analysis

The first thing we should note is that GBP/NZD is now close to its 20 and 50 day moving averages, which may act as price barrier for the asset. Volatility for GBP/NZD 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 90 day timeframe, which shows price moving down over that time. Also of note is that on a 14 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone up 5 out of the past 10 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPNZD, with 22 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 3.67, 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; below is a short snippet from it to give you a taste.

Price is following a downtrend making lower lows & highs. Price now in a channel pattern, which could signal a trend continuation if the support zone is broken, to create a new potential lower low towards the weekly ascending trend line.