From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with 5/15 minutes.
GBPNZD currency pair since October 2001is moving south. As a result,of the 15-year decline broken was very important support level at 2.2000 and we are now around historical lows, which were established in October 1976 year. Given the lack of any upward adjustment since September last year, in the near future we can expect the response of demand and re-test at least 1.8000 area.
On the weekly chart, we see recently continuing weakness of supply . If only appears stronger response from demand , then in the near future we expect a growth of around 1.7700 or further to1.9010 coinciding with momentum of the 50% Fibonacci correction and the downtrend line.
Looking at the daily chart, we see that from the closing of the month the market is oscillating around the level of 1.6820. We should also note that on the way to growth would stand still ongoing for last four months downtrend line.
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At the H4 chart we can find two boxes nearly identical size. Considering the numerous re-tests of the upper limit of the current consolidation, which coincides with the momentum of 50% lasting for four weeks declines and the fact that last time we rejected this level on Friday, in the near future we expect a decline in the area 1.6820.
For declines to continue, first we have to overcome today’s lows coinciding with local support 1.6950, and gold ratio 61.8% Fibonacci correction of last week’s gains. The rejection of this level would be a signal to continue growth.
On M15 chart we see that the market opened today witha bearish gap close to 120 pips , which was completely closed within 9 hours. Since then, the market moves very slowly south which could suggest weakening power of supply and predict upcoming increases in the near future.
