GBPNZD

GBPNZD

Wow what a day for the pair today. After such impulsive moves we tend to see price slow and stall which seems to be happening at the moment and that provides us with an opportunity to take advantage of the next leg with a high probability set up.

Sell Entry 1.9820

We are looking for a potential breakout to the downside and a continuation of the selling pressure, but this may not come immediately as a profit take from the impulse push may need to occur first. For those comfortable with the risk, you can look for this push into 1.9960 and trade the rejection away, this will present an excellent risk to reward. The higher probability entry would be to wait for a solid close below the significant level we have at 1.9850 and therefore a close below 1.9820 should confirm this for us.

SL 40-50 pips

These exotic pairs have a huge amount of volatility and therefore we need to give it some room to breathe and while this is the higher side of our preferred risk profile it still presents a good risk ratio. Stop losses above the level at 1.9850 should be a bare minimum for us how much higher you go above that is personal preference.

TP 1.9620

Our target for this position comes at the next significant level and this is where we are going to get a true insight to where this pair wants to trade between during this quarter. The likelihood is that we will take our profit and look for long positions back into 2.0000.