A few weeks back, I spoke about the GBP pairs being on watch for a reversal. They have been on an extended downtrend, and we are now awaiting for an imminent reversal. This is just market structure and the way all markets move.
Let us start with GBPAUD. We hit a major support zone at 1.78, and there was an opportunity for us with the fake out trade. A nice wick candle with the trigger being the FOLLOWING candle close higher. What I am waiting for is a pattern. A head and shoulders seems likely. I want to see that higher low with a break above the 1.8160 zone. Looking good!
GBPNZD with the breakout today. We have now ended the downtrend with a double bottom pattern breaking above the previous flip zone at 1.9260. Now I do want to see a higher low here. My thinking is this eventually pulls back before seeing buyers step in to create a higher low. This is what I am waiting for, and what you should as well if you have not entered. Yes, price can move higher before making this higher low, but that is just part of the game and being patient.
Not much I have to say about GBPCAD. The chart speaks for itself. A nice head and shoulders reversal pattern after a downtrend bouncing at a major support/flip zone. Today's candle close was key. We did have a daily close above the neckline yesterday, but I thought that body close was weak. We want STRONG breaks. Same criteria applies like GBPNZD. We enter and put our stops below the breakout candle. A good risk vs reward here.
Let us start with GBPAUD. We hit a major support zone at 1.78, and there was an opportunity for us with the fake out trade. A nice wick candle with the trigger being the FOLLOWING candle close higher. What I am waiting for is a pattern. A head and shoulders seems likely. I want to see that higher low with a break above the 1.8160 zone. Looking good!
GBPNZD with the breakout today. We have now ended the downtrend with a double bottom pattern breaking above the previous flip zone at 1.9260. Now I do want to see a higher low here. My thinking is this eventually pulls back before seeing buyers step in to create a higher low. This is what I am waiting for, and what you should as well if you have not entered. Yes, price can move higher before making this higher low, but that is just part of the game and being patient.
Not much I have to say about GBPCAD. The chart speaks for itself. A nice head and shoulders reversal pattern after a downtrend bouncing at a major support/flip zone. Today's candle close was key. We did have a daily close above the neckline yesterday, but I thought that body close was weak. We want STRONG breaks. Same criteria applies like GBPNZD. We enter and put our stops below the breakout candle. A good risk vs reward here.
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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.