Identify, plan and trade:
It's important when looking for a trade to follow a strict plan.
IDENTIFY: We have identified GBPNZD as a market to trade as GBP continues to fall with Brexit concerns combined with NZD commercial positions at all time highs in long contracts.
PLAN: The 4hr trend is great here with continued lower low, lower highs however we must be aware that the market has moved a long way already and is due a correction. The key support comes close to where we are looking to target. This is because the market is likely to test this area before making a decision.
TRADE: We have taken a trade at the previous structure lows with stops above the highs as this should hold if we are to see a continuation lower.
Entry: SELL @ 1.9725 or near
Target: 1.9574 (+151 pips)
Stop: 1.9845 (-120 Pips)
It's important when looking for a trade to follow a strict plan.
IDENTIFY: We have identified GBPNZD as a market to trade as GBP continues to fall with Brexit concerns combined with NZD commercial positions at all time highs in long contracts.
PLAN: The 4hr trend is great here with continued lower low, lower highs however we must be aware that the market has moved a long way already and is due a correction. The key support comes close to where we are looking to target. This is because the market is likely to test this area before making a decision.
TRADE: We have taken a trade at the previous structure lows with stops above the highs as this should hold if we are to see a continuation lower.
Entry: SELL @ 1.9725 or near
Target: 1.9574 (+151 pips)
Stop: 1.9845 (-120 Pips)