GBP/NZD Up 26 Pips On 4 Hour Chart, in an Uptrend Over Past 30 Days; Pin Bar Pattern Appearing on Chart

GBP/NZD 4 Hour Price Update

Updated August 25, 2020 05:06 PM GMT (01:06 PM EST)

GBP/NZD is up 26 pips (0.13%) since the previous 4 hours (opening the current 4 hour candle near 2.0113), marking the 3rd consecutive candle it has gone up. Out of the 37 instruments in the Forex asset class, GBP/NZD ended up ranking 10th for the four-hour candle in terms of price change.

GBP/NZD End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBP/NZD entered today at 2.00062, up 2 pips (0.01%) from the day prior. Out of the 40 instruments in the Forex asset class, GBP/NZD ended up ranking 21st for the day in terms of price change. Here is a price chart of GBP/NZD.

GBP/NZD

GBP/NZD Technical Analysis

The first thing we should note is that the current price of GBP/NZD is sitting close to its 20, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 35.6 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. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. It should be noted, though, that a trend in the opposite direction, going down, exists on the 90 day timeframe. Or to simplify this another way, note that out of the past 10 days GBP/NZD’s price has gone up 6 them. 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 26 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 3.25, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

BEARISH FLAG PATTERN AT PLAY LOOKING FOR SCALE IN ENTRIES FOR SHORTS


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