(Last Updated September 16, 2020 23:17 GMT)
At the time of this writing, GBPNZD’s rate is up 7 pips (0.04%) from the hour prior. This is a reversal of the price action on the previous hour, in which price moved down. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 20 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on GBPNZD. Given that we see an uptrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.
GBPNZD End of Day Recap
Updated 00:30 GMT (04:30 EST)
A moment of silence, please, for the end of GBPNZD’s 7 day down streak; price ended yesterday up 25 pips (0.13%) to finish the day at a rate of 1.91942. Relative to other instruments in the Forex asset class, GBPNZD ranked 15th yesterday in terms of percentage price change. Here is a price chart of GBPNZD.
GBPNZD Technical Analysis
The first thing we should note is that GBPNZD is now close to its 50 and 100 day averages, located at 1.9585 and 1.9668 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 50 day average, which is 391 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. Also of note is that on a 90 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 down 8 out of the past 10 days.
The View From Around the Web
Of note is that traders in aggregate have opinions on GBPNZD, with 20 buy signals on our radar and 4 sell signals. This imputes a buy/sell ratio of 5, which is very 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 tradingview.com; below is a short snippet from it to give you a taste.
GBPNZD rebounded from key level at 1.9120 with strong bullish movementPrice is based above HVN at level 1.9196 which indicates that pair is in accumulation phaseRSI is in uptrendIt’s expected for coming bullish momentum to retest major downtrendline near level 1.9400