As we can see we are inside a consolidation zone. Inside in this area we have noticed that we have formed a strong trendline that represents support, and we have broken this support after 7 hours of trying.
Now we will wait for the retest of this Support which is now resistance and again the Bearish movement until the touch of our Target.
Price trending in a bearish channel since august last year on the daily TF's
Price is clearly rejecting the resistance in confluence with the channel TL.
On the 4h chart, I believe we have a 4h consolidation box formed.
We need a breakout before looking for any entrys.
(1) Price has broke out the trend line + the 50 EMA with one engulfing red candle = very bearish;
(2) Then, we can see a momentum breakout of the weekly effective support which now turns into resistance = very bearish as well;
(3) Now price pulling back to the broken weekly level, thus forming a triangle pattern = great short setup;
Here I explain why we could see further movement to the downside for GBPNZD for next week with the current price action we are seeing on the H4 timeframe how we could potentially see a move into 1.85000 for a new low on this pair.
Leave a comment if agree, disagree or have any questions :)