Forex Trade Idea: Bullish Pennant on GBP/NZD

What’s up, comdoll buddies? I’m planning on taking another long forex position on GBP/NZD since this pair has been surging up the charts and fundamentals support further gains. Of course I’m also a bit bummed out that I left so many pips on the table when I closed my previous long trade at 2.1600. Look where GBP/NZD is trading now!

GBP/NZD 15-min Forex Chart

GBP/NZD 15-min Forex Chart

I’m thinking the pair could head much further north since the latest U.K. jobs report indicated strong momentum in wage growth, and this was echoed by the BOE meeting minutes. Meanwhile, the RBNZ has previously emphasized that they’re open to more interest rate cuts while the New Zealand GDP just came in below expectations for Q1 2015.

U.K. retail sales data is still up for release today and it is expected to show a flat reading for May, which might actually be the case since the claimant count change missed expectations for that month. Then again, the slowdown in inflation probably kept consumer spending supported so I’m crossing my fingers that an upside surprise could lead to more gains for GBP/NZD.

I zoomed in on the pair’s short-term forex charts to spot potential entry areas since it doesn’t seem to be showing any signs of a pullback. I’m seeing a bullish pennant on the 15-min chart so I’ll be ready to hop in on another upside break to catch the strong rallies. I’m a bit worried since stochastic is starting to move down from the overbought zone, but I guess I’ll have to work with a wide stop in case a retracement to the previous area of interest takes place.

What do you guys think?

Cheers,

Happy time

Other Popular Articles:   

Comdoll Trading Kit Forex Trade IdeaWhat is the STA strategy?Q1 2015 in Review