GBPNZD Bearish Opportunity: Short Setup Near Key Resistance
Updated
The GBPNZD pair on the 4-hour timeframe is displaying signs of a potential bearish continuation. The price is facing resistance from multiple technical factors, and indicators suggest a possible reversal to the downside. Here's the breakdown:
Key Resistance Levels:
The pair is testing the supply zone around 2.1550–2.1600, which aligns with a recent bearish "3s-Bear" signal.
The price remains below the 50 EMA and 200 EMA, confirming a bearish trend.
Indicators:
The Stochastic RSI is in overbought territory, signaling potential downside momentum.
The price has rejected the resistance zone multiple times, indicating strong selling pressure.
Entry Point: Consider entering a sell position around 2.1550–2.1570 if the price shows rejection at this level (e.g., bearish engulfing candlestick).
Stop Loss: Place the stop loss above the resistance zone at 2.1620 to account for potential false breakouts.
Take Profit:
Target 1: 2.1500 (recent support zone).
Target 2: 2.1430 (major support level below).
Risk-Reward Ratio: This setup offers a favorable risk-reward ratio of approximately 1:2 or better.
If the price breaks and closes above 2.1620, the bearish bias will be invalidated. Monitor price action closely and adjust the trade plan as necessary.
Key Resistance Levels:
The pair is testing the supply zone around 2.1550–2.1600, which aligns with a recent bearish "3s-Bear" signal.
The price remains below the 50 EMA and 200 EMA, confirming a bearish trend.
Indicators:
The Stochastic RSI is in overbought territory, signaling potential downside momentum.
The price has rejected the resistance zone multiple times, indicating strong selling pressure.
Entry Point: Consider entering a sell position around 2.1550–2.1570 if the price shows rejection at this level (e.g., bearish engulfing candlestick).
Stop Loss: Place the stop loss above the resistance zone at 2.1620 to account for potential false breakouts.
Take Profit:
Target 1: 2.1500 (recent support zone).
Target 2: 2.1430 (major support level below).
Risk-Reward Ratio: This setup offers a favorable risk-reward ratio of approximately 1:2 or better.
If the price breaks and closes above 2.1620, the bearish bias will be invalidated. Monitor price action closely and adjust the trade plan as necessary.
Trade active
Trade closed: target reached
Both target reached, profit! now close 2.141!
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