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.
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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