Sign In  |  Register  |  About Menlo Park  |  Contact Us

Menlo Park, CA
September 01, 2020 1:28pm
7-Day Forecast | Traffic
  • Search Hotels in Menlo Park

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

GBP/NZD price action: bearish H&S formation hints at extended bear market

By: Invezz
GBP/NZD trading strategy
  • Buy/sell asset: Sell GBP/NZD
  • Entry price: 2.05500
  • Stop loss: 2.06556
  • Leverage: 1x
  • Take profit 1: 2.49000
  • Take profit 2: 2.04000
  • Take profit 3: 2.0300
  • Timeframe: 1 week
  • Maximum profit: 1.22%
  • Maximum loss: 0.51%
GBP/NZD chart and technical analysis

GBPNZD has been in a bearish trend for the last couple of months. The price is making lower lows and will possibly drop further as the market structure is still bearish.

The formation of a bearish head and shoulder pattern signals an impending downtrend. The H&S pattern is an important indicator of the continuation of the bearish trend.

I am expecting the price will retrace to the shoulder of the 2.05500 resistance level and the right shoulder of the pattern before the drop. I will short the GBP/NZD once the price retraces to the 2.0550 resistance level and my target for this trade would be the 2.0300 daily support level.

GBP/NZD fundamental analysis

Fundamentally, the price of GBP/NZD correlates with the US dollar index. If the US dollar gains the price of GBP/NZD goes up and if the USD drops the price of GBP/NZD also drops.

The jobless data and NFP data will be published on the US dollar on Thursday and Friday respectively. If the data turns out positive the price of GBP/NZD will go up and if the data turns out negative the price of GBP/NZD will drop.

Great Britain pound to New Zealand dollar trade idea takeaways
  • GBP/NZD will likely retrace back to the 2.0550 resistance level before heading for new lows.  
  • I am expecting the price will drop to the 2.03000 support level in the coming days.
  • Multiple take-profit levels have been added to secure profit along the way.
  • The risk-to-reward ratio on this trade is 1:2.3.
  • The entry and stoploss prices have been placed at secure levels with a high winning probability.
  • Good luck!

The post GBP/NZD price action: bearish H&S formation hints at extended bear market appeared first on Invezz

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 MenloPark.com & California Media Partners, LLC. All rights reserved.