GBPNZD Reversed Off .382 Fib Retracement, Head and Shoulders

Here we have an opportunity to sell GBPNZD after it reversed off the .382 fib retracement and formed a head and shoulders pattern, which has been confirmed with a bearish break of the neckline.

At the current moment, you should wait for a better opportunity for entry as price is sitting on both a horizontal support (highlighted in green) and a ascending support (highlighted in blue)

A better view of the blue ascending support level is shown here:

We MUST break these two key levels for price to continue its move downward.

Good Luck Traders!

Comment:

My friend @KlejdiCuni has identified a strong take profit area around 1.9300:

Here the 200 EMA and .382 retracement of the bullish impulse leg converge at the 1.9300 level.

This level also has strong correlation with the 1.272 extension of the bearish impulse leg shown in the original chart.

Comment:

A good entry point:

Trade closed: target reached