GBPNZD 'STERLING RISES FROM THE DEAD!' WHAT NEXT?
Good afternoon from the UK. Personally my favourite time of the week, Sunday setups. In particular I've decided to explore Sterling after its great momentum to the upside this week. With the possibility of a no deal Brexit being nullified this benefited several sterling pairs with 3/400 pip bull legs. Looking at GBPNZD from the 15/02/2019 we have a fibonacci retracement play out with points A & B being the first drive up of this analysis followed by a C retracement to the 50% fibonacci we know a target of D being our -27% extension green line.
Now where would I expect the price to go next? you can say that the GBP bulls longterm may still be in the market however I am looking for a slow down in momentum and a correction in price with another retracement. I'm expecting sellers to get back into the markets into the first half of this week. If you take a look at the daily timeframe for this pair you will realise Fridays closure was a Hanging man at the end of an uptrend. To 'text book' this indicates a slow down to a bullish trend.
Now I can use multiple confluences to determine where I may set target zones for a pullback/retracement. I have two purple daily key levels which price regularly uses as a support (floor) or Resistance (Ceiling). I can also use a new fibonacci starting from a swing low where C is on last weeks fib therefore C becoming my new point A and using point D as my new point B. Hope you guys are following me. From here I can find some hidden key levels as a bearish target.
Finally I have a ascending trend-line which acts as a level of support also if price pushes towards this trend-line id be looking for one of three things:
1 Break
2 Bounce
3 False break.
For me once this all plays out I will be then look into the rest of the week to see if the buyers then create a new swing high or come out of a upwards trend into consolidation or a downtrend. Taking this pair day by day. Going into Monday I will be looking at if the hanging man has been respected with signals of bearish momentum
Now where would I expect the price to go next? you can say that the GBP bulls longterm may still be in the market however I am looking for a slow down in momentum and a correction in price with another retracement. I'm expecting sellers to get back into the markets into the first half of this week. If you take a look at the daily timeframe for this pair you will realise Fridays closure was a Hanging man at the end of an uptrend. To 'text book' this indicates a slow down to a bullish trend.
Now I can use multiple confluences to determine where I may set target zones for a pullback/retracement. I have two purple daily key levels which price regularly uses as a support (floor) or Resistance (Ceiling). I can also use a new fibonacci starting from a swing low where C is on last weeks fib therefore C becoming my new point A and using point D as my new point B. Hope you guys are following me. From here I can find some hidden key levels as a bearish target.
Finally I have a ascending trend-line which acts as a level of support also if price pushes towards this trend-line id be looking for one of three things:
1 Break
2 Bounce
3 False break.
For me once this all plays out I will be then look into the rest of the week to see if the buyers then create a new swing high or come out of a upwards trend into consolidation or a downtrend. Taking this pair day by day. Going into Monday I will be looking at if the hanging man has been respected with signals of bearish momentum