The Overbalance analysis aims to identify three financial instruments, analyzed exclusively on a four-hour interval (H4). The analysis uses only the Overbalance methodology, which allows you to determine where the trend may continue or where it may change.
Today’s analysis covers three instruments, evaluated exclusively in terms of the 1:1 correction structure.
AUDNZD
The AUDNZD currency pair has recently been moving within a local consolidation range, but ultimately broke above the resistance level of 1.1600. It was then tested from above, followed by another local upward movement. This pattern may indicate a desire to retest the recent highs in the 1.1693 area. From the perspective of the Overbalance methodology, the upward scenario remains valid. Only a sustained return of the price below 1.1600 would open the way for a larger correction towards the lower limit of the 1:1 pattern at 1.1452.
AUDNZD – D1 interval | Source: xStation5
EURGBP
Since mid-November, the EURGBP currency pair has been moving in a downward trend, with the last two corrections having almost identical ranges. The rebound in the 0.8724 area was a reaction to the upper limit of the 1:1 geometry, which, according to the Overbalance methodology, suggests that the market is ready to continue its decline. In this scenario, the market appears to be aiming to establish a new low. Only a negation of the geometric pattern marked with a red rectangle could open the way for greater gains and a change in sentiment.
EURGBP – D1 interval | Source: xStation5
GBPUSD
The GBPUSD currency pair has been on an upward trend since November last year. The latest correction was slightly deeper and slightly breached the green 1:1 pattern, but its range did not exceed 127.2%, indicating that the main trend is still in place. In the event of another correction, the key support level remains at 1.3690, which is the lower limit of the significant Overbalance pattern. Only a break below this level could suggest a change in sentiment, which remains bullish at the moment.
GBPUSD – D1 interval | Source: xStation 5
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