The GBP/NZD is in the process of a corrective bull
move, following a highly impulsive bear
move. As can be seen, recent price action has been very bullish
indeed, with overbought readings on RSI
and Stochastics. The overall picture is still bearish
though, with the recent bullishness forming a flag continuation pattern and being corrective in nature. With this in mind, we're looking for the support and resistance
zone, coupled with the 38.2-50 fib area, and finally we'd be looking for some momentum 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.