GBPNZD Top-Down Analysis

OANDA:GBPNZD   British Pound / New Zealand Dollar
Hello Traders,

Here is the Top-Down Analysis of GBPNZD (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 44 - 26 Oct

M > Market is moving in a rising channel . Price reached support of channel coinciding with monthly support, faced rejection and started upward move creating a double bottom .

W > Price pulled up till 0.618 Fib level on last weekly bearish impulse and faced rejection. This level also coincided with weekly support, now turned resistance.

D > Price created an M formation during bearish move and we can expect it to make an upward move to test its neck. Price also created a W formation and as expected it dropped to test its neck before continuing with upward move. Price is moving to the upside creating HH and HL and we can expect it to move towards our target.

As per COT GBP saw addition of Long and closure of Short positions further improving net positions though still in -ve. BXY however weakened during the said week and ended last week in a Doji after strong buying pressure during start of the week. NZD saw closure of both Long and Short positions further improving net positions, whereas ZXY was weak during the said week but it gained strength last week. ZXY has been gaining strength slowly since June 2020.

4H > Price is rising in an upward wedge creating HH and HL with small dips in middle of the wedge . Price is currently testing bottom of wedge as support and we will for reversal confirmation to compound our position with a Long.

Pair Correlation: GBPNZD has positive correlation with GBPCAD , GBPAUD and negative correlation with EURGBP and NZDCAD .

This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.

Thank You