Hello Traders,
Here is the Top-Down Analysis of GBPNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Market was moving in a rising channel but it broke out channel to the downside last month. Price is currently testing monthly support.
W > Price opened and closed below the channel support hence this level will now act as resistance, though we can see rejection to the upside.
D > Price has been dropping for past 4 days continuously in last week with rejection wick on Friday as the only sign of rejection to the upside. Market tested monthly support again yesterday but closed with rejection to the upside.
As per COT GBP added major Long and few Short, slightly improving net positions, N-R have also added major Long but closed few Short positions, improving cumulative net positions. BXY gained strength during the said period however after gaining further strength last week it closed on a weak note. NZD further added both Long and Short bringing Long to the highest for the year, ZXY has gained strength all of November, it is now testing a major resistance level.
For GBP Institutions have been closing Long since August and increasing their portfolio of Short, about 10K Short added in November. Hence weak GBP can be expected in long term. Whereas NZD has gained massive strength and we can only expect some correction. Hence GBPNZD can consolidate at current level for sometime.
4H > We saw bullish divergence and price has already retraced below 0.382 Fib level on last bullish move. A rejection to the upside from any of Fib level will provide a LH however we expect price to either consolidate or continue to drop.
Pair Correlation: GBPNZD has positive correlation with EURNZD and negative correlation with NZDCHF, NZDCAD, NZDUSD and NZDJPY.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of GBPNZD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Market was moving in a rising channel but it broke out channel to the downside last month. Price is currently testing monthly support.
W > Price opened and closed below the channel support hence this level will now act as resistance, though we can see rejection to the upside.
D > Price has been dropping for past 4 days continuously in last week with rejection wick on Friday as the only sign of rejection to the upside. Market tested monthly support again yesterday but closed with rejection to the upside.
As per COT GBP added major Long and few Short, slightly improving net positions, N-R have also added major Long but closed few Short positions, improving cumulative net positions. BXY gained strength during the said period however after gaining further strength last week it closed on a weak note. NZD further added both Long and Short bringing Long to the highest for the year, ZXY has gained strength all of November, it is now testing a major resistance level.
For GBP Institutions have been closing Long since August and increasing their portfolio of Short, about 10K Short added in November. Hence weak GBP can be expected in long term. Whereas NZD has gained massive strength and we can only expect some correction. Hence GBPNZD can consolidate at current level for sometime.
4H > We saw bullish divergence and price has already retraced below 0.382 Fib level on last bullish move. A rejection to the upside from any of Fib level will provide a LH however we expect price to either consolidate or continue to drop.
Pair Correlation: GBPNZD has positive correlation with EURNZD and negative correlation with NZDCHF, NZDCAD, NZDUSD and NZDJPY.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX