Long

GBPNZD - Double Bottom

Updated

Potential "Ugly Double Bottom" setup i will be watching for on GBPNZD. Trend has developed on the daily chart, respecting the year long trend support line at the bottom. Rules to the pattern suggest waiting to enter long once price has broken the middle structure and then retested. Price could continue past the previous structure high, however i will look to take initial profits inside the green box.

As GBP BOE events will be high impact tomorrow (Thursday; 8/3/17) any major shift in monetary policy [interest rate] or positive statements [during inflation report] could either support the pattern or show instant rejection, thus i will wait as stated for the break and retest.

This is potentially a longer term trade, requiring 1-2 months to complete. Scaling in positions will be necessary in order to minimize risk and maximize profit.

Note

As two monthly pivots lie in between the structure and pattern completion target, if the pattern does develop price action should obey these pivots to some extent. This is why scaling in positions is best since both of these pivots were never touched, therefore we should see some consolidation in between them [if not rejection of R2 or Pivot].

Note

Trade has finally made it back onto the playing table after a few days of decline. Rules, and levels for entry and exits are still valid.

-If you were to trade this pair on a daily timeframe only; look for price to reach the 50% fib retracement and then have a buy limit down around 1.8 price area.
-If you are trading this intraday, current 1hr chart price has broken weekly R2 and gone for a retest and bounced. Long from here until the 50% fib extension, close and wait for re-entry upon support.

Note

There is the weekly engulfing of the two significant prices to break (the prices in red come from structure high & 2013 structure low) as well as the break of both previous month's open and a break of the previous monthly high (black and green lines)

Note

high and tight flag pattern formed after breaking quarterly pivot & structure high. The amount of confluence to enter this trade upon breakout is stacking up nicely.

Note

Will be watching price action carefully on the 4hr and 1hr charts, target area has been breached. Most important question at the moment is will we see a break of the weekly R1 and then a retest to continue up. Typically i would close at the target; however with the British Pound being rather strong lately i believe we can at least continue higher up to the previous structure close price (1.8814).

Trade closed manually

Trade closed at the hourly doji candle close on the 1hr chart today. To those who followed for the last 70+ days; may your patience be rewarded.

Jroge107

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