GBP/NZD – Bearish Reversal Opportunity?

11 окт.

In this analysis of GBP/NZD, the chart highlights the formation of a Harmonic Bat pattern, with price recently reaching point D and showing rejection at a significant resistance zone. This is a classic reversal setup, suggesting a potential bearish move, especially as the TDGMA indicator signals overbought conditions.

1.Short Position from Point D (Bearish Reversal)

Rationale: The Bat pattern at point D offers a high probability for a bearish reversal, especially with confirmation from reversal candlestick patterns or bearish divergences in indicators. Price has already shown signs of rejection, reinforcing the short setup.
Entry: Sell after confirmation, around the 2.140 zone.
Take Profit (TP): 2.1177
Stop Loss (SL): 2.151

2.Sell After Retest of Resistance (2.1500)

Rationale: If price moves back to retest the 2.1500 level after an initial decline, it could offer a controlled-risk selling opportunity. This level may act as resistance and trigger renewed selling pressure.
Entry: Sell on retest of resistance at 2.1500 with weakness signals (e.g., reversal candlestick).
Take Profit (TP): 2.1177
Stop Loss (SL): 2.16

The Bat pattern indicates a strong likelihood of bearish reversal at point D, making the short strategy a high-probability setup. While selling on retests could also be explored, it presents a slightly lower chance of success but still offers a potential opportunity.

As always, keep an eye on lower timeframes for price action confirmation before entering.