GBP/NZD Up 109 Pips; in an Uptrend Over Past 30 Days

GBP/NZD Price Recap

GBP/NZD is up 109 pips (0.54%) since yesterday (with its current price near 2.02245), marking the 2nd day in a row an increase has occurred. The price move occurred on volume — and we’re using the number of tick price changes as a proxy for volume — that was down 4.18% from the day prior, but up 8.02% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/NZD ranked 2nd yesterday in terms of percentage price change. Let’s take a look at price chart of GBP/NZD.

GBP/NZD Technical Analysis

Coming into today GBP/NZD is now close to its 20, 50 and 100 day averages, located at 1.9934, 1.9861 and 1.9927 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 20 day average, which is 290.1 pips away. It should be noted, though, the 50 day simple moving average turned upwards, which may be a bullish sign. Volatility for GBP/NZD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. The clearest trend exists on the 30 day timeframe, which shows price moving up over that time. Or to simplify this another way, note that out of the past 30 days GBP/NZD’s price has gone up 17 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPNZD, with 4 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 0.67, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a flag technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Use this as a guide to develop your view of the chart….Main items we can see on the daily chart:a)We have a clear Support/Resistance zoneb)Currently, there is a Flag pattern (continuation structure)c)The Flag pattern is contained on the support zoned)Based on the previous technical aspects….If the price breaks above 2.04848 we expect a continuation of the bullish movement, towards 2.14165