By Anton Eljwizat – In the last two weeks of trading, the GBP/NZD experienced much bullishness, as it stands now at 2.2810. However, as I demonstrate below, it seems that the pair’s bullish run may have run out of steam, and a bearish correction could be underway soon. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.
• Below is the daily chart of the GBP/NZD currency pair.
• The technical indicators that are used are the William Percent Range, Relative Strength Index (RSI), and MACD.
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The MACD indicates an impending bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The Williams Percent Range signals further bearishness for the pair, which in turn indicates further downward pressure to occur anytime soon.
• Point 4: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
GBP/NZD Daily Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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