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So far so good on this pullback setup! I’ve decided to hop in at market when this pair showed a bit more bullish momentum, but I’m having fresh doubts about holding on.

Long GBP/NZD Idea

I’ve had a bullish bias on sterling for quite some time due to strengthening BOE hike expectations, and the upside break out on this symmetrical triangle gave technical confirmation.

GBP/NZD 4-hour Forex Chart
GBP/NZD 4-hour Forex Chart

 

I went long as price made its way to the 1.9500 handle in anticipation of upbeat U.K. data last week. However, as Pip Diddy discussed in his GBP review, the British currency was down in the dumps on account of disappointing results.

What kept this pair afloat was the Kiwi’s weakness when risk aversion popped its head back in the markets. There are no major reports due from both economies this week, so I’ll have to keep close tabs on sentiment to gauge if I should close early or not.

My stop loss is currently below the 1.9000 major psychological handle and I’m aiming for the 2.0000 area as my ultimate profit target.

I’ll also keep my eye on the next upside barriers around 1.9600-1.9700 to spot any selling pressure that could send this pair back down. For now, here’s what I have:

Long GBP/NZD at 1.9500, stop loss at 1.8975, PT at 1.9975

What do you guys think?

Happy

See also: Q4 2017 Trading Performance Review

 

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