The Overbalance analysis aims to identify three financial instruments, analysed exclusively on a four-hour interval (H4). The analysis uses only the Overbalance methodology, which allows us to determine where the trend may continue or where it may change.
Today’s analysis covers three instruments, assessed exclusively in terms of the 1:1 correction structure.
GBPUSD – H4 interval
Since November last year, the GBPUSD currency pair has been moving in an upward trend. The latest correction, although slightly larger than the previous two marked with green rectangles, did not negate the 127.2% ratio, which, according to the Overbalance methodology, means that the main trend remains upward.
Additionally, if the price manages to break above 1.3721 today, it will negate the local 1:1 downward pattern, paving the way for a continuation of the movement towards new highs. On the other hand, a break below 1.3639 will increase the risk of a deeper downward correction.
GBPUSD – H4 interval Source: xStation5
NZDUSD – H4 interval
The NZDUSD currency pair has also been on an upward trend since November last year. The latest correction was greater than the local 1:1 ratio, but it still falls within the range of the largest correction in the entire upward impulse, with a lower limit of 0.5949. As long as this level is not negated, the upward scenario remains the baseline, and additionally, the price remaining above 0.6032 supports the assumption of a continuation of the movement to higher levels.
NZDUSD – H4 interval Source: xStation5
CADJPY – H4 interval
The CADJPY currency pair has been on an upward trend for quite some time. The latest correction had exactly the same range as the first correction in the trend, i.e. the correction in October last year, which fits into the classic Overbalance structure. In addition, the price returned above the polarity of the broken smaller 1:1 geometry at 113.22, which reinforces the scenario assuming a continuation of the upward movement.
CADJPY – H4 interval Source: xStation5
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