Fxprotrader

GBPNZD@ Rally Is About To Be Over

FX:GBPNZD   British Pound / New Zealand Dollar
Looking at the higher timeframes we can clearly see that GBPNZD since April is going up in a very sharp way. Price now tests a critical resistance zone which is easy to see in the monthly chart. In the daily chart we have a bearish divergence with RSI something that adds a lot to our thought about shorting this pair. In the lower timeframes (1h, 2h) we have a breakout of a medium term support level (blue trendline ) from a 5 wave move.

We now should wait for a pullback correction structure most likely a ABC three wave correction at about 0.5 - 0.618 retracement of the 5 wave leg. In that that zone we should watch for a bearish harmonic pattern or we can just sell at 0.618 fib level with stoploss just above the begining of wave 1.

Key Resistance Zone:
Bearish Divergence:

If price enters the "sell zone" i will come back with the setup. Have a nice trading week.

Like & Comment,

John
Thank you guys. Be patient and wait for the pullball. Good luck..!
Reply
Welcome & Thank you John. Your analyze is very simple and clear to understand. Ive been learning from you a lot.
Reply
fdtbeijing Gunjmaa79
thanks very much for your chart. i've tracking GBPNZD for months. your chart really enlightens me
Reply
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