Following my analysis on price action of the GBPNZD
pair, the market shows an unyielding presence of bears who wish the push price lower. A look at the weekly chart taking into consideration the previous market swings shows a bearish flag
pattern formation and the previous week’s close left an evening star
formation behind indicating the presence of bears in the market. Moving on the 4H timeframe where I look for market structure it’ll be hard to miss out on the head and shoulders
pattern showing a reversal from the previous uptrend. As seen on my chart, below is a list of confluence I have on the GBPNZD
1. Weekly close leaving an evening star
2. Bearish Flag
pattern on the weekly TF.
3. A recent LH and break of previous HL creating a “Head and Shoulders Pattern” on the 4H.
I’m looking to see the market pull back, retest my supply zone
(RESISTANCE), and then create an opportunity to short the pair. And then a break and retest of my demand zone
(SUPPORT) before creating another opportunity to short again. All my entries will be done on the 15m timeframe, I’ll be risking 15 pips on both trades and maintaining a RRR