FX:GBPNZD British Pound/New Zealand Dollar
The GBP/NZD is in the process of a corrective move, following a highly impulsive move. As can be seen, recent price action has been very indeed, with overbought readings on and Stochastics. The overall picture is still though, with the recent bullishness forming a flag continuation pattern and being corrective in nature. With this in mind, we're looking for the zone, coupled with the 38.2-50 fib area, and finally we'd be looking for some failure and/or some candlestick confirmation. Our entry should be at a point of confluence between these factors, with a fairly tight stop and a large reward in mind as is the case with trading with the trend and using the impulsive-corrective-impulsive probable sequence.