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