GBPNZD (4H Timeframe) Analysis

🔍 Key Observations**
1️⃣ Market Structure**
- **Break of Structure (BOS)**:
- Multiple **BOS levels indicate an uptrend**, but recent bearish movement suggests a short-term retracement.
- **Change of Character (CHOCH)**:
- A recent CHOCH to the downside indicates a temporary shift in market sentiment.
- The price is currently reacting from an **equilibrium zone** after a retracement.



2️⃣ Liquidity Zones & Key Levels**
- **Previous Day’s High (PDH) & Previous Day’s Low (PDL)**:
- **PDH (~2.2100) is a potential liquidity target** if price moves bullish.
- **PDL (~2.1900) could act as a liquidity grab** if price moves lower before continuing up.
- **Premium & Discount Zones**:
- The **premium zone (above 2.2200)** is a potential area where price could face selling pressure.
- The **discount zone (below 2.1900)** could serve as a strong demand area for buy entries.



3️⃣ Smart Money Considerations**
- **Liquidity Grab Possibility**:
- If price **breaks below PDL (2.1900) and quickly rejects**, this could indicate smart money accumulation and a bullish move.
- If price **pushes up into the 2.2100-2.2200 premium zone**, it could be a strong area for shorting.
- **Equilibrium & Order Blocks**:
- Price is currently hovering around **equilibrium**, meaning it could either bounce or seek deeper liquidity before moving up.
- **A bullish reaction from equilibrium (2.1980 - 2.2000) could indicate continuation to PDH.**


4️⃣ Trade Setup Refinement**
📌 Bullish Scenario**
- **Entry Zone:** Between **2.1980 - 2.1900** (around equilibrium and demand zone).
- **Stop Loss (SL):** Below **2.1850** to protect against deeper retracements.
- **Take Profit (TP):** Around **2.2100 - 2.2200** (premium supply zone).
- **Risk-Reward Ratio:** **1:4+**, making it a high-probability setup.

📌 Bearish Scenario (If Price Rejects Premium Zone)**
- If price **pushes into 2.2100 - 2.2200** and shows **bearish rejection**, a short opportunity could emerge.
- **TP for shorts:** **2.1980 - 2.1900** (liquidity grab area).
- This would be a short-term trade within the overall bullish structure.



🔹 Final Thoughts**
✅ **Primary Bias:** **Bullish**, expecting price to hold above **equilibrium (2.1980 - 2.1900)** and push toward PDH.
✅ **Alternative Bias:** If price breaks below **2.1900**, wait for a liquidity grab before confirming a new bias.
✅ **Trade Plan:** Watch for bullish confirmation near **2.1980** for a buy setup.