GBP/NZD Down 23 Pips in Last 4 Hours, in an Uptrend Over Past 14 Days; is Inching Close to 200 Day Average

GBP/NZD 4 Hour Price Update

Updated August 24, 2020 01:08 PM GMT (09:08 AM EST)

A moment of silence, please, for the end of GBP/NZD’s 4 four-hour candle up streak; price ended the previous 4 hours down 23 pips (-0.11%) to finish the four-hour candle at a rate of 2.0039. Relative to other instruments in the Forex asset class, GBP/NZD ranked 28th the previous 4 hours in terms of percentage price change.

GBP/NZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/NZD entered today at 2.00043, down 206 pips (1.02%) from the day prior. Out of the 40 instruments in the Forex asset class, GBP/NZD ended up ranking 39th for the day in terms of price change. Here is a price chart of GBP/NZD.


GBP/NZD Technical Analysis

Coming into today GBP/NZD is now close to its 20, 100 and 200 day averages, located at 1.9785, 1.9831 and 1.9971 respectively, and thus may be at a key juncture along those timeframes. 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 200 day average, which is 32.9 pips away. 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 30 day timeframe, which shows price moving up over that time. Interestingly, a trend in the other direction exists on the 90 day timeframe, where price is headed down. For additional context, note that price has gone up 6 out of the past 10 days.

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPNZD, with 17 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 3.4, which is bullish. As for the rationale, technical traders seem to be citing the appearance of channel, demand zone and fibonacci technical patterns. Here’s a piece we found on; below is a short snippet from it to give you a taste.

The GBPNZD chart is in an overall uptrend and has now retraced to the 0.618 fibonacci level from the last upward move. The price should now head up to the next target. Hence, the trade would be executed as follows:GBPNZDBUY: 2.00250SL: 1.98500TP1: 2.02500TP2: 2.05000

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