GBP/NZD Testing Channel Support Before Potential Upside
On the GBP/NZD 1D timeframe chart, the price has been moving within an ascending channel since mid-2023. Currently, the price is in a corrective phase after failing to break the resistance at the upper boundary of the channel. The main scenario in this analysis suggests that the price could decline further to test the support area around 2.154 – 2.140, which coincides with the lower boundary of the ascending channel.
If the price holds at this support area and shows a bullish reaction, a buying opportunity can be considered with a target towards the channel resistance area around 2.260. In the decision-making process, several confirmations need to be observed:
On the other hand, if the price breaks below the channel support significantly, the bullish scenario could fail, and GBP/NZD may experience a trend reversal towards a bearish direction. Therefore, risk management remains essential, with an ideal stop loss placed below the channel support area.
If the price holds at this support area and shows a bullish reaction, a buying opportunity can be considered with a target towards the channel resistance area around 2.260. In the decision-making process, several confirmations need to be observed:
- Price Reaction at Channel Support – If the price shows a strong rebound in this area, the bullish scenario remains valid.
- Candlestick Reversal Confirmation – Patterns such as a bullish engulfing or a pin bar near the support area can serve as good entry signals.
On the other hand, if the price breaks below the channel support significantly, the bullish scenario could fail, and GBP/NZD may experience a trend reversal towards a bearish direction. Therefore, risk management remains essential, with an ideal stop loss placed below the channel support area.
Trendline, Bollinger Bands, and Chart Pattern Analysis. Mid-Long Term Strategy. No courses or premium signals provided. Open for collabs or free analysis requests - feel free to DM.
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Trendline, Bollinger Bands, and Chart Pattern Analysis. Mid-Long Term Strategy. No courses or premium signals provided. Open for collabs or free analysis requests - feel free to DM.
Wyłączenie odpowiedzialności
Informacje i publikacje przygotowane przez TradingView lub jego użytkowników, prezentowane na tej stronie, nie stanowią rekomendacji ani porad handlowych, inwestycyjnych i finansowych i nie powinny być w ten sposób traktowane ani wykorzystywane. Więcej informacji na ten temat znajdziesz w naszym Regulaminie.