This setup is similar to the GBPJPY i posted before, they are very correlated so we must be carefull no to overexpose our account.
Im expecting a big correction on all GBP crosses (GBPCAD, GBPJPY,GBPNZD, GBPNZD) but it is difficult to pinpoint an entry.
It would be better to look for entries on lower timeframes to keep SL small.
Here we can see a double bottom pattern with divergence on MACD.
We can see also a correction to the 0.8860 fib retracement, a powerfull combination.
There are two AB=CD patterns suggesting this pair is making a multiple zigzag structure about to finish.
Best regards.
Comments
UnknownUnicorn226610
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The 0.886 fib retracement is busted.. looks to consolidate before bears take over.
Thelearner
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Thank you
jbourgault
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Hummm...that might be too soon.
-Where you see a double top, I see consolidation (I would perhaps said otherwise if either the long term trend line would have been broken or the July 9th low was not broken)
-As said, the long term trend line was not broken <-- that would be a major bearish signal BTW
-Regarding GPBAUD and GBPNZD, both will be affected a lot by the RNZB rate decision...most probably in a bullish way (which is in a couple of hours)
-Last retracement fixed the overbought situation
-No major divergence so far
Good luck and trade safe!
FullTimeTrader
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Hello, thanks for sharing your views
1) I agree the price is consolidating now. If you can see on this chart we had similar setup on the previous S/R structure and the price retraced at least to the last one. The first target is my minimal expectation.
2) Its true on D1 chart the long term trendline was not broken. A safer strategy would be to look for shorts when this already ocurred. If this happens i will look to sell also.
Best regards.
TimBrent
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nice settup
agree with you, just published my idea for a shorter term trade ^^
good luck to you!