GBPNZD - Patience For Direction
Updated
Greetings Fellow Traders,
GBPNZD has been inside a massive correction for several months now - the anticipated break has been to the upside - but it has failed to produce a desirable close to confirm that conviction several times already, instead opting to continue the correction.
We are finding ourselves once again on the brink of this important move....
Rule Number One: Be Patient. This trade (no matter which direction it chooses) will be more than just a few short hours of directional trading. It will produce several days, if not weeks worth. I am showing the 4 hour chart for this post, but I will be taking my trade off of the daily chart, a confirmed daily close outside of either boundary.
Rule Number Two: Big Picture is Key. Here you can see the Daily chart - what started as a Descending Channel has slowly but very surely instead taken the shape of a Descending Wedge. Ultimate direction of buy is *almost* certain, however we should see another sell rally, keep an eye on the lower support of the wedge should price make it there.
This will easily be the trade of the month, once we get that necessary confirmation - be patient and keep an eye on which direction it chooses.
Feel free to like/comment/follow.
GBPNZD has been inside a massive correction for several months now - the anticipated break has been to the upside - but it has failed to produce a desirable close to confirm that conviction several times already, instead opting to continue the correction.
We are finding ourselves once again on the brink of this important move....
Rule Number One: Be Patient. This trade (no matter which direction it chooses) will be more than just a few short hours of directional trading. It will produce several days, if not weeks worth. I am showing the 4 hour chart for this post, but I will be taking my trade off of the daily chart, a confirmed daily close outside of either boundary.
Rule Number Two: Big Picture is Key. Here you can see the Daily chart - what started as a Descending Channel has slowly but very surely instead taken the shape of a Descending Wedge. Ultimate direction of buy is *almost* certain, however we should see another sell rally, keep an eye on the lower support of the wedge should price make it there.
This will easily be the trade of the month, once we get that necessary confirmation - be patient and keep an eye on which direction it chooses.
Feel free to like/comment/follow.
Note
Shortly after this was posted - the lower wedge support was broken paving the way for shorts in the near term - Easy couple hundred pips that should have been acquired. Profit should be locked or taken already at this point. Buying opportunities are put on hold for the time being just as the analysis described. I am waiting for a better price or a confirmed break. Given the nature of NZDUSD at this point - it is likely that the more desirable entry will occur before the confirmed break...be patient.
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