GBP/NZD Down 21 Pips On 4 Hour Chart, Fares the Worst Out of Forex; Pin Bar Pattern Appearing on Chart

GBP/NZD 4 Hour Price Update

Updated July 02, 2020 01:16 AM GMT (09:16 PM EST)

GBP/NZD is down 21 pips (0.11%) since the last 4 hour candle (opening the current 4 hour candle near 1.9238), marking the 2nd candle in a row a decline has happened. Out of the 37 instruments in the Forex asset class, GBP/NZD ended up ranking 32nd for the four-hour candle in terms of price change.

GBP/NZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

The choppiness in the recent daily price action of GBP/NZD continues; to start today, it came in at a price of 1.92345, down 23 pips (0.12%) since the previous day. On a relative basis, GBP/NZD was the worst performer out of all 40 of the assets in the Forex asset class. Below is a price chart of GBP/NZD.

GBP/NZD Technical Analysis

Notably, GBP/NZD is now close to its 20 and 50 day averages, located at 1.9334 and 1.971 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 99.6 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 90 day timeframe, which shows price moving down over that time. Or to simplify this another way, note that out of the past 10 days GBP/NZD’s price has gone up 5 them. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

Of note is that traders in aggregate have opinions on GBPNZD, with 8 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 1, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a relative strength index technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

– Reversal Multi-Session W (Double Bottom) pattern on the 29th June indicated the new low of the cycle (Peak Formation Low, PFL)….- Shark-fin (RSI crossed back into the volatility bands) on the first leg of the Double Bottom pattern which confirmed price wanted to move back up….- Candle closed above the 13 EMA which confirmed my long entry on this pair.