Whats up traders,
Here we have GBP/NZD on the 1H chart.
Price recently had a correct up move after an extended down trend, and has hit a historical support between 1.9200 and 1.9250. Since price hit this level, price been showing signals of weakness.
Prior to seeing price hit the horizontal resistance zone, price tested the sideways resistance channel. This was a sign of strong weakness. With this in mind, if price retested the horizontal resistance again, it would be a great short. This is exactly what has happened, and we tested the channel resistance, horizontal resistance, and also saw a double top set up.
I am expecting price to begin a down move away from the resistance zone, to a downside target at around 1.9050.
Due to the multiple resistance levels, the candlestick behavior at the resistance zone, and the resistance on the 200 moving average, this could be a strong down move.
I will update this analysis as it progresses.
Here we have GBP/NZD on the 1H chart.
Price recently had a correct up move after an extended down trend, and has hit a historical support between 1.9200 and 1.9250. Since price hit this level, price been showing signals of weakness.
Prior to seeing price hit the horizontal resistance zone, price tested the sideways resistance channel. This was a sign of strong weakness. With this in mind, if price retested the horizontal resistance again, it would be a great short. This is exactly what has happened, and we tested the channel resistance, horizontal resistance, and also saw a double top set up.
I am expecting price to begin a down move away from the resistance zone, to a downside target at around 1.9050.
Due to the multiple resistance levels, the candlestick behavior at the resistance zone, and the resistance on the 200 moving average, this could be a strong down move.
I will update this analysis as it progresses.
