Forex Trade Review: GBP/NZD Falling Wedge

Boo yeah! Another winning trade! Just a few hours after I posted my earlier update, GBP/NZD dipped all the way down to my profit target at 2.0675. If you’re wondering how I spotted this setup, make sure you read my initial idea first.

GBP/NZD 4-hour Forex Chart

GBP/NZD 4-hour Forex Chart

I zoomed in to the past couple of months of price action to show y’all how it turned out. I was able to short at 2.1475 around the top of the wedge and the 61.8% Fib then I adjusted my stop below breakeven to protect my profits as price went further south. You see, I didn’t want to leave it all up to chance since there was a speech from BOE Governor Carney and the Chinese PMI lined up.

Fortunately for my trade, the downbeat U.K. current account balance was enough to bring GBP/NZD down to the previous lows near 2.0650. As it turned out, the economy saw a much larger than expected deficit of 32.7 billion GBP, overshadowing the small positive revision in its Q1 GDP.

Here’s how my trade turned out:

P/L: +800 pips / +0.58%

I’m pretty happy with how this trade went, as I actively managed the trade and made regular adjustments along the way. I was a bit worried that the recent RBNZ cut would dampen demand for the Kiwi, but it looks like risk appetite reigned supreme in this case. Stay tuned for my next setups!

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  • Murray

    Congratulations on that trade. Nicely stalked. I think it’s also a good lesson in holding your nerve based on your original analysis. When the price went down to 2.1 area (around 16 Mar) and then came all the way up to 2.145 I think a lot of people would’ve felt they’d missed the chance to take some profit and closed the position.