Monday, April 4, 2016

GBPNZD - Update 04th April 2016

When looking at this chart I think its fair to say that it has ran a fair way down the hill. I think its entirely possible that we will start to get an upward bounce this week but like everything I don't guess I wait for the market to tellme.

So lets look at my 1h chart for this:



The comm dolls like AUD and NZD look toppy for now and gold looks like it needs to fall off a cliff however don't take my word for it I don't trade gold but looking at the charts its seems like it wants a rest.

As the chart indicates there is a lot of chop around the price immediately above where price is at the moment and if news can fuel it then I think we will make our way through the 2.07, 2.08 and up to the 2.09's pretty easily. There is good seller pressure at 2.0970 to 2.10 which should be the first stop on the train and the first place it should make it too once its gets through the chop.

The next section from 2.10 to 2.1150 is pretty solid by the looks with sell orders and I would expect this will take a bit to get through here. I personally like the next level up for a sell, there is a couple of reasons for this:

1. Its a good couple of weeks since we have been here, time for the sell orders to build up.
2. Last time the price moved sharply from this level dropping 250 pips in a few hours suggesting a real imbalance between buyers and sellers.
3. As mentioned on the chart the cup formation gets completed at 2.1220 so normally buyers are going to look for the next level up to start selling at. 

This might take some days to play out but there could be opportunities when price pulls back after breakouts around the 2.10 level to ride it up the hill.

Good Luck 
Simon

 

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