Forex Trade Adjustments: Long GBP/NZD

What’s this I hear about RBNZ talking down the Kiwi again?! GBP/NZD already reached my first PT at 2.0300 but I’m gonna keep the rest of my trade open, thanks to these new developments.

Before reading on though, make sure you take a look at my initial long GBP/NZD trade idea and forex updates.

Just a few hours back, RBNZ head Wheeler’s words triggered a massive Kiwi selloff when he expressed openness to exchange rate adjustments. He reiterated that the current level of the New Zealand dollar is unjustified and unsustainable, prompting forex market participants to speculate about potential central bank intervention.

With that, I’m set on keeping my remaining GBP/NZD long position open with a trailing stop of 200 pips. There are no other event risks for both the U.K. and New Zealand for the rest of the day so I’m inclined to think that Wheeler’s remarks could keep this pair rallying.

GBP/NZD 1-hour Forex Chart

GBP/NZD 1-hour Forex Chart

At the moment, GBP/NZD looks ready to break past its recent highs near the 2.0400 handle and might be due for more gains as the next trading sessions roll along. How high do you think this might go?

As always, I look forward to getting your feedback on my comdoll trades!


Happy time

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  • ForExchange

    Hi HappyPip,

    I like the flexibility and your reassessment for the pair. We never know if it works but you have a good edge so go for it! Usually when I see a change in the trading plan I only see earlier than planed closing so this is a great example for the opposite.

    One thing I learned this year a lot: when I want to decide how long a pair might go, I do not look at possible price levels ahead of time. Until my fundamental bias is valid and candlesticks in real time confirm my bias then it is a valid trade. It can be 500 pips to come but also nothing. So the bias is very valid now and we will see how far it can go without a pip target.