Looking at the higher timeframes we can clearly see that GBPNZD since April is going up in a very sharp way. Price now tests a critical resistance zone which is easy to see in the monthly chart. In the daily chart we have a bearish divergence with RSI something that adds a lot to our thought about shorting this pair. In the lower timeframes (1h, 2h) we have a breakout of a medium term support level (blue trendline) from a 5 wave move.
We now should wait for a pullback correction structure most likely a ABC three wave correction at about 0.5 - 0.618 retracement of the 5 wave leg. In that that zone we should watch for a bearish harmonic pattern or we can just sell at 0.618 fib level with stoploss just above the begining of wave 1.
Key Resistance Zone:
Bearish Divergence:
If price enters the "sell zone" i will come back with the setup. Have a nice trading week.
Like & Comment,
John
We now should wait for a pullback correction structure most likely a ABC three wave correction at about 0.5 - 0.618 retracement of the 5 wave leg. In that that zone we should watch for a bearish harmonic pattern or we can just sell at 0.618 fib level with stoploss just above the begining of wave 1.
Key Resistance Zone:
If price enters the "sell zone" i will come back with the setup. Have a nice trading week.
Like & Comment,
John
