GBPNZD has formed a bearish engulfing candle on the daily time-frame. RSI divergence shows the price is ready to move down quickly. Slight Bollinger Band outbreak. Price appears to still be in consolidation on the daily time-frame, however, after looking at the weekly time-frame this trade setup is further confirmed. A significant bearish engulfing candle formed recently on the weekly time-frame, and it appears the pullback has ended and now the price is ready to re-test previous lows and soon enough previous support. SL set above previous highs. TP set at previous lows. I will attach the weekly point of view below. For an even lower risk entry, you may wait for a pullback on the daily engulfing candle, then a bearish engulfing on a lower time-frame such as the 4H or 1H.
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Note
Weekly POV: Note
Price pulled back on the weekly time-frame as expected, now it is ready to make new lows.Note
Confirmation candle closed. Note
Sorry, I accidentally posted the GBPAUD confirmation candle screen shot above, here is the GBPNZD screen-shot after the close of the bearish engulfing confirmation candle. Note
Despite the pullback, this setup is still valid. Wait for a break of the lower trend-line before entering. TCP formed on 4H time-frame. Note
Price consolidated last week, it appears to be dropping now.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.