Possible short opportunity on GBPNZD.
We have seen rejection at resistance for the 4th time and so we can expect some bearish momentum.
A break of the 200 day EMA and the trend line at the 1.8975 level would call for a short opportunity where we could see price return to support at the 1.8610 level.
Confirmation of breakout:
- Closed bearish 4Hcandles
- Price breaks below 200 day EMA
- Break in the trendline
- Signals from MACD andRVI
I find GBP pairs to be rather volatile so I would advise a smaller position size and letting the trade run to its target. Also, some important GBP news out tomorrow (1st Feb 2021)
We have seen rejection at resistance for the 4th time and so we can expect some bearish momentum.
A break of the 200 day EMA and the trend line at the 1.8975 level would call for a short opportunity where we could see price return to support at the 1.8610 level.
Confirmation of breakout:
- Closed bearish 4Hcandles
- Price breaks below 200 day EMA
- Break in the trendline
- Signals from MACD andRVI
I find GBP pairs to be rather volatile so I would advise a smaller position size and letting the trade run to its target. Also, some important GBP news out tomorrow (1st Feb 2021)