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GBPNZD One Step Closer to Our 1.8280 Target

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The GBPNZD is breaking lower this week after closing below 1.90 two weeks ago.

I’ve been discussing the short opportunity since October 26th and have included GBPNZD in the last two forex forecasts.

As I mentioned to Daily Price Action members in the forums, I took a short position in late October.

That trade is 760 pips in profit as of this post.

I’ve since added to that position a couple of times.

What made me short GBPNZD in October?

It was a combination of factors.

First, the pair has been carving lower highs since March.

That alone was an indication that a breakdown was imminent.

Second, the bearish pin bar that formed on the weekly time frame in late October signaled weakness.

GBPNZD lower highs on the weekly and bearish pin bar
GBPNZD weekly time frame

Those lower highs combined with the bearish pin bar was my cue to get short.

I added to the position once GBPNZD retested the 1.9100 area as new resistance.

If today closes below the 1.8890 area, we could have yet another opportunity.

Notice how 1.8890 has served as key support since November 27th.

A daily close below 1.8890 would open the door to our final target at 1.8280.

Keep in mind that GBPNZD could find support near 1.8620 on the way down.

Disclosure: I hold a GBPNZD short position.

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GBPNZD breakdown on the daily chart
GBPNZD daily time frame

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11 comments
Justin Bennett says

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Obase Kingsley Owan says

Great call. I saw the first call but only watch to see how it will play out.

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Oniyide Kayode says

Thanks Justin, i got it

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    Justin Bennett says

    Anytime. 🙂

    Reply
Mawanda Derrick says

I traded that pair but l exited on the first low on the GBPNZD l feared the return on the support

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Ray says

I hope 1.86 isnt a support . kinda risky but if i set my TP to 1.85 its still profit

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    Justin Bennett says

    I wrote that 1.8620 is support in the post…

    “Keep in mind that GBPNZD could find support near 1.8620 on the way down.”

    Reply
      Ray says

      Yeah but if im selling , I wouldnt want it to be lol

      Reply
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