The double bottom formed in the past several months,and now the market is pulling back the neckline where also a good Demand Zone works.
Meanwhile the 0.5RET of previous rise also locates at this zone.
Maybe it is a ideal long term buying opportunity.
So it is good to buy at 1.780-1.790 levels when the price pulls back again and gives signals in the PRZ.
SL: below...
Setting up sell stop orders near 1.80787 with TPs @1.8000 and S1 pivot line. With NZD's recovery and UK's recent tragedy, this pair is more likely to at least drop down to 1.800 before possibly go ranging or bounce back up, depending on the UK general election result this coming June 8.
D:
W:
Confidence: A
After more than one week's waiting, it finally approached my estimated entry tg.:$.799-1.789
I already have trial order effected from:$1.803-1.797
Tp1: $1.86
Tp2:$1.92
Tp3:$2.05
We are currently in Double Bottom scenario, if it holds this level then price action move up to previous resistance zone and further if it breaks that zone new higher close is highly possible.
If you zoom out onto the Daily chart you will see that 1.80 level had some importance in the past. Price has pulled off the Daily Resistance very fast and now looking for a decent rotation off the 1.80 level.
Look for some sort of sign from the market before just aggressively buying up the 1.80. Maybe a double bottom, RSI divergence, bullish candlestick pattern,...
Price has broken below the lower parallel of the rising channel, and after that it formed a bearish flag pattern, an indication that the market is going to drop further. We now see that price broke below the flag so that's the time going short with GBPNZD. A realistic profit target is the 1.78300 level where we have previous structure.
Reasons:
Bearish Head & Shoulders @ Confluence of Resistance in higher time-frames.
Stoch RSI is now "Over Sold", so a pull-back is needed for further bearish continuation.
Past support should become future resistance and here we get a 61.8% Fibonacci retracement level as confluence.
Trade Safe. :)
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Price broke thought the blue level and looks to be possibly retesting.
Fibs are also around that zone indicating a potential turning point for the price to enter at.
Targets would be at the lower 78.6 and 61.8 fib levels.
Now that the down move has reached the up trend line it appears as if it is time to look for a run back to the upside. The trend line on the daily chart shows support at the moment and if it holds will provide a good reward to risk ratio.
