I’m seeing a bit of hesitation on this pair to continue with its climb to the triangle top, so I’m rolling my stop up to protect my profits.
Long GBP/NZD Trade
Here’s a zoomed-in version of the long-term symmetrical triangle I’m watching on this pair. As you can see, I hopped in after support held, leaving some pips on the table as a price I willingly paid for confirmation.
Now that buyers have gained enough traction to take GBP/NZD up to the middle of the chart pattern, I think it’s about time I roll my stop up to reduce my exposure. I’m also seeing a short-term consolidation, but it also looks like a bullish flag continuation signal.
I was able to hop in at 1.9275 so I’m moving my stop loss just slightly past that level to have a few pips in the bag. I’m still keeping my aim on the top of the triangle near the 1.9600 mark but also feeling a bit wary of the overbought stochastic signal.
The economic calendar shows a handful of top-tier event risks for the U.K. this week, so I’ll also be quick about cutting this long position in case the actual numbers disappoint. After all, Brexit jitters are still lingering, but market participants seem to be more focused on other geopolitical risks lately.
There are no major events lined up for New Zealand, likely leaving the Kiwi highly-sensitive to any changes in risk sentiment. So far, the troubles in Turkey are weighing the commodity currency down, on top of the downbeat bias shared by the RBNZ last week.
Still, I’m playing it safe by adjusting my stop to lock in 20 pips on this long trade while keeping my upside open until my PT at the triangle resistance. Do you guys think this is the right move to make?
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