When we look at this pair, we can see that it is sitting at a really interesting point.
In between the two red lines is a key support/resistance area. NZDGBP has been using this as a resistance.
At point A, we can see where it has hit the key level but the price action hasn't been strong enough to push through. After a significant dip, we can see that the price level comes back up and retests the price action twice (Point B) in a short amount of time. Again the price action fails to break through and it take another dip. We now have a situation where we are back at the key level. If we break through the key level with a good amount of volume, then we will wait for the price action to retest the new support before entering the trade long. If it fails to break through and we get confirmation that this is going short (Through my tutorial on how to safely enter a trade), then this will be a fast paced short.
In between the two red lines is a key support/resistance area. NZDGBP has been using this as a resistance.
At point A, we can see where it has hit the key level but the price action hasn't been strong enough to push through. After a significant dip, we can see that the price level comes back up and retests the price action twice (Point B) in a short amount of time. Again the price action fails to break through and it take another dip. We now have a situation where we are back at the key level. If we break through the key level with a good amount of volume, then we will wait for the price action to retest the new support before entering the trade long. If it fails to break through and we get confirmation that this is going short (Through my tutorial on how to safely enter a trade), then this will be a fast paced short.
Trade active:
Entered the trade as per my entry analysis on the other posting. This was a text book entry and a very good example of a short. My stop was placed at 52174. i will now lock in profits by adjusting my stop