GBP/NZD Price Analysis: Bulls with eyes on a daily correction

• GBP/NZD bulls stepping back to the table on the 4-hour time frame. 
• Bearish bets will be back in play once the daily correction is complete. 

GBP/NZD is in the hands of the bulls again on the lower time frames in what is expected to be a correction of the latest daily bearish impulse.

On a longer-term basis, there is still plenty of room to go to the downside before the price meets the demand zone. 

The following is a top-down analysis that illustrates where the next high probability opportunities are from a bullish perspective and then bearish on completion of the daily correction.

Monthly chart

The monthly chart shows that the price is well on its way into an accumulation area which has proven to be strong support and for where the market would be expected to hold.

Weekly chart

The weekly chart shows the price has been rejected at resistance and is therefore expected to continue into the monthly support zone. 

Daily chart

As illustrated, the overextended M-formation’s downside impulse could be due for a correction and to at least a 38.2% Fibonacci retracement level, or even to where the 50% mean reversion meets the prior support structure. 

4-hour chart

From a 40hour perspective, the price is indeed stalling and could therefore be in the throes of the daily correction to the upside.