Forex Trade Idea: GBP/NZD Double Top

While waiting for candlestick confirmation on my AUD/USD short trade idea, I browsed through the comdoll crosses and spotted this long-term forex setup on GBP/NZD.

GBP/NZD Daily Forex Chart

GBP/NZD Daily Forex Chart

As you can see on the pair’s daily time frame, price has been moving inside a rising trend channel and just bounced off the top of the range. It is currently stalling around the mid-channel area of interest, which happens to be the neckline of the shorter-term double top reversal pattern. A break below this area or the 2.0000 major psychological handle could lead to a move until the channel support at 1.9600.

Recent central bank events suggest a downside bias for this pair, as the BOE Inflation Report confirmed that a rate hike would be delayed while the RBNZ Financial Stability Report led to a Kiwi rally.

I haven’t decided on my entry levels yet though, as I’m torn between shorting early at market or waiting for a quick retracement on the shorter-term time frames. What do you suggest?

Cheers!

Happy time

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  • ForExchange

    Hi Happy Pip,

    how funny, in the morning I have not seen this post but answered the other post. I mentioned that I am in a very positive result with this pair and look for an opportunity to scale in.

    Actually I even see a good chance to break that channel support.

    Good luck and let us know what you do,
    FE

    • Entered half my usual position below 2.0000 and looking to enter on a pullback or another strong break lower! I’ll remember to keep a wide stop on this one, too.

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