FX.co ★ Quee | GBP NZD

ANALYSIS OF GBP/NZD PAIR. The GBP/NZD H1 chart reveals a significant technical structure characterized by an extended bullish rally followed by a consolidation phase and a sharp bearish retracement, indicating potential reversals and key resistance interactions. Initially, the market witnessed a strong uptrend, with price action forming higher highs and higher lows, signaling strong bullish momentum. This rally encountered significant resistance near the 2.2595 level, as marked by multiple price rejections. The 200-period moving average (red line) provides dynamic support and resistance, first acting as a guide for the bullish move and later serving as resistance during the decline. The sharp drop from the resistance level near mid-March suggests a strong supply zone, which resulted in a downward correction. However, recent price action shows recovery attempts, with price gradually pushing back towards the resistance level at 2.2595, where it is currently facing rejection again. The presence of strong volume during bullish pushes indicates that buyers are attempting to regain control, but persistent resistance at this level suggests that sellers are still actively defending it. If price successfully breaks above this level with strong volume, it could trigger another bullish wave, potentially targeting higher levels near 2.2700. Conversely, if the resistance holds and a rejection follows, a bearish retracement back towards the 2.2420 support zone could be anticipated, as this level has previously acted as a demand zone.

Analyzing further, the 200-period moving average is currently positioned slightly below the price, hinting at a potential bullish crossover if price sustains above it. However, the recent price movement has shown consolidation below the major resistance, forming a range-bound structure, which suggests indecision in the market. The presence of multiple wicks near the resistance level further validates strong selling pressure at this zone. The candlestick formations indicate a struggle between bulls and bears, with multiple failed attempts to break the 2.2595 resistance level. If a breakout occurs, it must be accompanied by strong volume confirmation to avoid a false breakout scenario. Traders should monitor the support level at 2.2420, as a breakdown below this region could intensify bearish pressure, leading to further declines towards the next major support at 2.2150. Alternatively, if price sustains its bullish pressure and manages a breakout, it could lead to a trend continuation scenario. Volume analysis suggests that buying interest has not faded completely, but the resistance zone remains a strong obstacle. Therefore, traders should be cautious and await confirmation before taking directional trades, ensuring proper risk management through stop-loss placement around key support and resistance zones. The overall trend direction remains neutral-to-bullish unless price decisively breaks either the resistance or the support levels.