By Dan Eduard – For our technical analysis today, we will be looking at a not so frequently traded pair. While GBP/NZD has been steadily declining over the last 10 days, it appears that sterling is now poised for a comeback.
In our analysis, we will be examining the 4-hour chart provided by ForexYard. The technical indicators we will be using are Bollinger Bands, Stochastic Slow and Relative Strength Index (RSI).
1. The currency pair is currently trading right on the lower Bollinger Band, which usually serves as an indication that a bullish trend may occur in the immediate future.
2. A cross in the Stochastic Slow lines at the 20 level helps support our theory. Typically, when a cross occurs at this low of a point, an upward trend begins to develop.
3. Finally, traders can see that the RSI level is currently right on the lower support line. Traders can further take this as a sign that a bullish correction will take place shortly, further confirming our original hypothesis.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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