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FinancialGamblR
Nov 8, 2023 4:25 AM

Swing Opportunity on GBPNZD Short

British Pound / New Zealand DollarFOREX.com

Description

The price action I've observed on the daily timeframe points to a very nice bearish sentiment in five key points.

  1. Price peaks in August by forming a range, which breaks near the end of that month.
  2. Consolidation forms shortly after and downside momentum forces price to break below the lower range boundary.
  3. This marks a technical trend change as defined by the crossing over the faster exponential moving average (EMA) below the slower EMA.
  4. Price retraces in October and forms another consolidation.
  5. In today's close, price retests the lower range boundary of this consolidation and holds below it; price currently exhibits continued selling strength.
Comments
FIFI_FX
there is a double bottom. be cautious.
I can't say your analysis is wrong because the price may form HS after a long consolidation at the current range, but at the same time, I can see DB there. two scenarios here.
GlobalHorns
Haven’t analyzed this one yet but will. Thanks for idea.
FinancialGamblR
@GlobalHorns, thanks for sharing, let me know if your analysis is different!
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