Looking ahead to next week's open I wanted to draw some additional attention to obvious NZD pairs that are already on my radar. Similar to the EURNZD set up posted mid week, we have additional opportunities forming. GBPNZD has not only closed below a daily channel confirming a key technical break, but it also has a very strong weekly candle operating in it's favor.
***While it is Thanksgiving this week in the United States, this does not mean that the market will not move, plus there are 3 very strong days of trading prior to this Holiday. I will not alter my analysis for it.***
Primary chart shows the Daily channel as well as a candle closing clear outside of it. Pictured below is a Weekly Chart showing the upper resistance of that channel to emphasize the top of the wick, but I wanted to draw more attention just to the we have associated with the daily confirmed break.
So how can you expect to trade this? As always we have our core entry which is to wait for the market to retest the the old support that was broken.
Trade Opportunity -
Pending Sell Limit - 2.3230 or Manual Entry look for Price Action on Smaller Time Frame levels
Stop Loss - 2.3350 - Keep in mind we're looking for the channel to hold price down, not CLOSE back inside
Take Profit - 2.2850
This trade is a daily set up, but has weekly momentum. If you choose to enter as a Sell Stop on a new low, bear in mind the Risk/Reward ratio changes immensely. I would recommend selling any rallies on this pair this week and possibly next.
Please remember to do your own analysis before entering a trade. If you like what you see here feel free to comment, follow, "like" or ask questions. If there is a specific chart you would like my input on, simply send me a PM.
For those that it is relevant to, Happy Thanksgiving!