GBPNZD Long Opportunity; Risk Reward 1:6
As we see, GBPNZD has been in a bit of a consolidation period this week. Two days ago we saw price stop hunt with a spike down only to come back up leaving us with a huge daily candle rejection. This rejection also lines up with the 38.2 Fibonacci retracement on the previous low to high move from 1.8641 to 1.946. The 38.2 Fibonacci rejection is typically indicative of a rapid continuation in the direction of price. In addition, we have price sitting on a daily zone that I have marked and the daily close above this zone is indicating that it has found support. This is a brilliant long opportunity as price is likely to push higher to finish out the week. Stops will be extremely small, going right below the previous daily low, and take profits will be placed at the 1.95 psychological resistance level, which will also give us a new higher high that we are looking for. Risk to reward on this trade is greater than 1:6.
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