GBPNZD - Bearish Engulfing
Updated
GBPNZD has formed a bearish engulfing candle on the daily time-frame. RSI divergence shows the price is ready to move down quickly. Slight Bollinger Band outbreak. Price appears to still be in consolidation on the daily time-frame, however, after looking at the weekly time-frame this trade setup is further confirmed. A significant bearish engulfing candle formed recently on the weekly time-frame, and it appears the pullback has ended and now the price is ready to re-test previous lows and soon enough previous support. SL set above previous highs. TP set at previous lows. I will attach the weekly point of view below. For an even lower risk entry, you may wait for a pullback on the daily engulfing candle, then a bearish engulfing on a lower time-frame such as the 4H or 1H.
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Note
Weekly POV: Note
Price pulled back on the weekly time-frame as expected, now it is ready to make new lows.Note
Confirmation candle closed. Note
Sorry, I accidentally posted the GBPAUD confirmation candle screen shot above, here is the GBPNZD screen-shot after the close of the bearish engulfing confirmation candle. Note
Despite the pullback, this setup is still valid. Wait for a break of the lower trend-line before entering. TCP formed on 4H time-frame. Note
Price consolidated last week, it appears to be dropping now.
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