GBP/NZD Starts Printing Lower Highs And Lower Lows

traded lower on Monday, and continued to do so on Tuesday. It managed however to hit support at 1.9234, and then, it rebounded somewhat. The latest slide has confirmed a forthcoming lower low on the 4-hour chart, while the rate has already been forming lower highs, as marked by the downside line drawn from the high of Mar. 8. With that in mind, we would consider the short-term outlook to have just turned somewhat negative.

Even if the current rebound continues for a while more, we see decent chances for the bears to take the reins back from near the 1.9323 zone, or near the aforementioned downside line. If so, the forthcoming leg south may target once again the 1.9234 area, the break of which may extend the decline towards the low of Mar. 4, at 1.9178, or the low of the day before, at 1.9112.

Turning our gaze to the short-term oscillators, we see that the RSI runs below 50, but has bottomed and seems to be able to move somewhat higher. The MACD, although below both its zero and trigger lines, shows signs that it could bottom as well. Both indicators detect slowing downside speed, which supports the notion for some further recovery before the next leg south.

In order to abandon the bearish case, we would like to see a strong move above 1.9463. The rate would already be above the downside line, while such a break will confirm a forthcoming higher high on the daily chart. The bulls may then get encouraged to target the 1.9566 territory, defined as a resistance by the high of Nov. 4, the break of which may allow extensions towards the peaks of Oct. 29 and 30, at around 1.9617.

GBP/NZD 4-hour chart technical analysis

GBP/NZD 4-hour chart technical analysis

Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 79.07% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure – https://www.jfdbrokers.com/en/legal/risk-disclosure .

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.