GBPNZD - 4H - Bearish Trend Continuation Strategy Technical Analysis: GBPNZD is in a strong bearish trend, moving within a bearish channel and consistently closing candles inside the channel. The pair is printing lower lows (LL) and lower highs (LH), reinforcing the downward momentum. With no divergence , the trend looks stable for continuation. We will look to sell at the 0.5 Fibonacci retracement level to capitalize on the ongoing bearish trend.
Fundamental Analysis: September is a risk-on environment, and NZD is showing more strength than GBP, which supports the bearish outlook for GBPNZD. NZD remains stronger than GBP in the current market conditions.
Seasonality: GBPNZD tends to be bearish from mid-August to the end of December, with a particularly strong downtrend expected from the last week of September to the first week of October.
Entry Strategy:
Entry Point: Sell at 2.11640, around the 0.5 Fibonacci level.
Stop Loss: Set at 2.12500, above the last lower high (LH) in a good resistance zone.
Take Profit 1: First target at 2.10782.
Take Profit 2: Second target at 2.09922.
This strategy leverages both technical and fundamental factors, with strong seasonality and market sentiment favoring a continued bearish move in GBPNZD. The entry, stop loss, and take profit levels are well-defined for effective risk management and potential gains.
