Trade Idea: GBPNZD Breaks For A 2nd Time!
Important note on charts:
It’s imperative to your trading success, you are trading with a broker that offers “New York Close Forex Charts” where each daily candle opens and closes at 5 pm EST. This is essential with trading price action correctly.
Trade Setup Disclaimer:
All my trade setups provided, is not advice or a recommendation to trade or invest. It is solely for educational and general information only.
Don’t blindly buy or sell the Forex markets discussed in this trade setup. Do your own research and always be aware of the risks and rewards.
Potential Trade Setup: GBPNZD Breakout of a Ascending triangle technical price pattern for the second time
All charts I provide are of the Daily time frame unless stated otherwise.
Trend: Very Bullish
Key Levels: Broken resistance 1.9473 with expecting this to hold as a new support.
Price Action Signal: Awaiting a retest of the broken key level for a price action signal
Chart Notes: The GBPNZD pair broke out of the ascending triangle for the 2nd attempt to set of the next bullish move higher.
With a strong bullish bias that remains intact with looking for a move lower back into the broken resistance.
Potential Trade Idea:
I am considering buying this pair again if the broken key level of 1.9473 now holds as a new support.
I will be looking for a strong bounce of this key level with a nice bullish reversal candlestick pattern.
GBPNZD Breaks For a 2nd Time
As you will notice from the chart below, the GBPNZD had been in a long time bullish ascending triangle, with once again breaking out.
The next step will be to either wait for a Daily swing pullback or look to capture the next lower time frame move with the trend.
Price may very well continue higher from here with targeting the previous Daily highs.
Meaning there may not be a test of the broken triangle from above. So rather miss the entirety of the move, I will be looking to catch a 4 hr entry with the 4 hr trend.
On the chart I have shared above shows the Daily time frame.
My preferred entry with the Daily time frame, after the GBPNZD breaks the bullish ascending triangle is to look for any buying opportunities of the broken structure.
But as I’ve said, this may very well never come back to test this structure level.
So my alternative plan is to catch a trade with the lower time frame trend. As on the chart below I have shown where I would expect an area of support to come in.
With there being plenty of space to now move on this pair, gives us a great opportunity. Let me know your thoughts on this setup, how are you preparing to tackle this pair?
If you want to learn more on these price patterns, check out my latest post on “How to Catch High Profiting Moves with Continuation Price Patterns”
When it comes to Forex trading mistakes to avoid, the foreign exchange market (forex) has a low barrier to entry, which makes it one of the world's most accessible day trading...
Is Forex trading a legit undertaking? If this is something that concerns you then I answer those important questions in this post as well as how to avoid those Forex trading...