GBPNZD Top-Down Analysis

Hello Traders,

Here is the Top-Down Analysis of GBPNZD (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 42 - 13 Oct

M > Market is moving in a rising channel. Price reached support of channel, also monthly support and faced rejection.

W > Price has been moving up with rejection on both sides, it is now testing weekly resistance level.

D > Price had created a W formation and as expected price dropped to test its neck before continuing with upward move. We can see an M formation and expect price to continue with its bullish move to test the neck and complete formation. However we can see supply zone on way to our target, this can pause price for a while.
Hence we can focus towards 2 targets.

As per COT GBP saw addition of Long and few Short positions improving net positions slightly but still in -ve, N-R saw closure of Long and addition of major Short, reducing cumulative net positions. Commercials saw closure of Long and Short, Short positions for them have reduced to least for current year. BXY improved for the said week and further enhanced its position last week. NZD had closure of few Long and major Short increasing net positions, confirming strength of ZXY for the said week. Short positions have reduced to least in current year. ZXY has been gaining strength slowly since June 2020. ZXY improved its position last week.

4H > Price has currently pulled back at 4H supply zone that also coincided with daily support.

Pair Correlation: GBPNZD has positive correlation with GBPAUD and negative correlation with NZDCAD.

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