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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
GBPNZD is at risk of closing below a significant level today.
This should be a familiar level to those of you who have been following along over the last few weeks.
The pound cross broke above rising wedge resistance on May 1st.
You can even see where the pair tested this level as new support on the 3rd.
Buyers did well to hold GBPNZD above it earlier this month. But that may be about to change.
Remember what I always say about topside breaks of ascending patterns?
They don’t usually last!
In most cases, a break higher like the one here on GBPNZD is nothing more than a bull trap.
However, this is not a confirmed short just yet.
I have entered with a starter position, but I’m waiting for a daily close below that 1.9660 area before I scale in with size.
If GBPNZD closes the day back above 1.9660, I will exit with a small loss.
On the other hand, a daily close below 1.9660 would confirm the false break and expose wedge support near 1.9450.
That may just be the start, though.
A confirmed false break would likely trigger a move below wedge support to expose the next horizontal level at 1.9050.
But it all comes down to today’s close. That’s the key.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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