I was watching the PM's statement of the UK's 12 Step Plan. (Sounds like an AA meeting) for getting out of the EU completely.
The GBPNZD long was initiated as the NZD v's GBP is the strongest most over extended of all the pairs on the Daily currency strength meter that I use.
Going for a 1:3 as per usual.
Point C appears to be holding the support level that has been tested numerous times and held. Point C also, if holds, provides a double bottom with point A. Should a bullish pattern form at this support level, then I would expect a rise to point D to complete the Gartley.
Going to play either a momentum long move with a 61.8% retracement, or will be short the market at the 127% extension. Planning to let the market decide where it wants to go and take a good RR. Both trades are over 3:1 risk reward:
LONG @ 1.7740
S/L @ 1.7594
TARGET @ 1.8150
SHORT @ 1.8030
S/L @ 1.8105
TARGET @ 1.7820
GBPNZD Monthly chart - correction on lower support Trendline. The formation of a bullish reversal in the shape of Tweezer Bottom or Railway tracks comes to mind.
This comes off the back of a Fib Projection outcome that has played out since August 2015. Price has moved 100% of the initial selloff. Correction in play. 76.4% fib level a potential 1st target.
GBPNZD - Short Reversal Trade
Monthly - Below key support level - new all time lows made in past 2 weeks - Bearish
Weekly - Doji after pull back weekly candle, at support turned resistance
Daily - 5 indecision candlesticks at resistance zone;
- 0.618 fib retracement/ resistance level
4hr - Double top
Pull back further to past monthly support
I'm waiting for a breakout from the current consolidation, there are multiple missed pivots above price but fundamentals could weaken the pound so I could trade this on a breakout to the downside.
My ideal set up would be for price to tag the bottom of the triangle and there to be a bullish crossover on the stoch at around or just above the 50 line.
Last night Carleton Capital went LONG on this pair. This is one of our "feature" pairs. Our feature pairs are those trading pairs on a watch list because of their current price in relation to their historical price. The flash crash low of 1.6706 is the lowest price I have in the last 16 years and without further analysis and confirmation is likely to be an all...
It has hit the lowest level in recent years and the last time it hit those levels it was in 2013 and there was a rally on the upside.
The trend line is also showing evidence that its getting tighter if it breaks that trend line expect a huge rally on the upside. I will leave my order above the current bar and hold this position till it reaches the 61.8% Fibonacci level.