GBPNZD possible bounce from support??
Hi Guys.
The GBP/NZD pair is approaching a support level that has some nice confluence to warrant a possible long trade.
The shaded box it is approaching is the fib golden zone from where the pair bottomed to its recent high.
There is previous resistance likely to become support that has not been used yet.
50 day MA ( orange line) is hovering in there and could be used as support.
The AVWAP from a previous bottom which has been used a few times for strong support is also there ( black line).
Hourly RSI is in oversold but yet to show divergence.
Looking left the shaded area has been used previously by price for some strong moves.
Harmonic pattern...actually the fib levels on this pattern are a cross between a Gartley and a bat ...the midpoint being the 0.5 required for bat but the entry point if finishes at 0.786 is the Gartley requirement. Point C not exactly 38.2 or 88.6 as required by most of the patterns . If we get the entry at point D at 0.886 or thereabouts then yes its more like a bat. I'm thinking more the 0.786 entry area at the moment as that resistance that hasnt been tested will probably be used before going further down.
Usually when the GBP NZD or GBP AUD are attracting buyers the US indices stall or face some selling so will be interesting what plays out when the US session opens soon.
Nothing in this game is ever certain, far from it but the confluence I pointed out will give me more confidence in having the trade go as Im anticipating, if I do enter into one. As always I'm going to see what plays out in this area and look for entry reason, most likely a double bottom or inverse hs or hammer candle.
I've had some pretty dodgy calls recently, mainly trying to short the freaking US indices (which I think most traders have. I am stil long biased and hold long positions from further down on all four indices but always looking for sell setups with no overhead resistance. I am wrong as often as Im right, but thats the way it goes. I enjoy sharing ideas, which is what they are, just my ideas and seeing the thoughts of other traders and learing from feedback.
Safe Trading all.
The GBP/NZD pair is approaching a support level that has some nice confluence to warrant a possible long trade.
The shaded box it is approaching is the fib golden zone from where the pair bottomed to its recent high.
There is previous resistance likely to become support that has not been used yet.
50 day MA ( orange line) is hovering in there and could be used as support.
The AVWAP from a previous bottom which has been used a few times for strong support is also there ( black line).
Hourly RSI is in oversold but yet to show divergence.
Looking left the shaded area has been used previously by price for some strong moves.
Harmonic pattern...actually the fib levels on this pattern are a cross between a Gartley and a bat ...the midpoint being the 0.5 required for bat but the entry point if finishes at 0.786 is the Gartley requirement. Point C not exactly 38.2 or 88.6 as required by most of the patterns . If we get the entry at point D at 0.886 or thereabouts then yes its more like a bat. I'm thinking more the 0.786 entry area at the moment as that resistance that hasnt been tested will probably be used before going further down.
Usually when the GBP NZD or GBP AUD are attracting buyers the US indices stall or face some selling so will be interesting what plays out when the US session opens soon.
Nothing in this game is ever certain, far from it but the confluence I pointed out will give me more confidence in having the trade go as Im anticipating, if I do enter into one. As always I'm going to see what plays out in this area and look for entry reason, most likely a double bottom or inverse hs or hammer candle.
I've had some pretty dodgy calls recently, mainly trying to short the freaking US indices (which I think most traders have. I am stil long biased and hold long positions from further down on all four indices but always looking for sell setups with no overhead resistance. I am wrong as often as Im right, but thats the way it goes. I enjoy sharing ideas, which is what they are, just my ideas and seeing the thoughts of other traders and learing from feedback.
Safe Trading all.
Comment:
This pair still looking god for a move up from support. Not quite ready yet. Would like to see another dip first to touch its 50ma or even better the black AVWAP line and the previous resistance and enter into the fib golden zone and hit entry level of the harmonic pattern before considering entering long on this one. If price pulls back I'll also be looking at lower time frame sell setups on the US indices and EUR/JPY as they tend to move inverse of this and other GBP/... pairs.