The Pound has exploded higher on Friday and in my experience after such strong movements comes a decent pullback.
I am bullish on the GBP as we are now trading well above the most important moving averages, aswell as having convincingly broken through the Daily 21 EMA.
I am expecting a retest of the D21 and previous structure found at the 133.200 level before...
Sell the rally, but where to sell?
The big blue 504 period EMA represents the Daily 21 EMA on this hourly chart, and as you can see we had 2 nice bounces off of it.
I have marked up the 618 fib of the double top so if you were a bear you could short from 132.937 as a 2618 trade with an initial target of 132.477 or roughly 45 pips. The rest is up to your trade...
So here is another gbp pair in which we can highlight the possible GBP growth.
We have all the technical data here to consider a long with a good risk/reward ratio.
Here are our plans:
Plan A: we buy gbpnzd during todays trades and keep it until the price shows weakness.
Stop-Loss: 1.79163
Take-Profit: 1.89319
Prfoit ratio: 3.03
Blan B: anyway we need to...
